Both a Price Taker and a Price Searcher Maximize Profits

question 71

Multiple Choice

Both a price taker and a price searcher maximize profits (or minimize losses) by producing the quantity of output at which __________ equals __________.

• A)total revenue; total cost
• B)average total cost; price
• C)average variable cost; marginal cost
• D)marginal revenue; marginal cost
• E)marginal cost; average fixed cost

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Definitions:

Air Horn

A pneumatic device designed to create an extremely loud noise for the purposes of signaling or attracting attention, commonly used in sports events and emergencies.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, used in classical conditioning experiments.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or involuntary response without the need for prior learning.

Classical Conditioning

The educational practice of regularly associating two stimuli together; a response that starts out being elicited by the second stimulus is in time elicited by only the first stimulus.