If Colgate-Palmolive Wants to Maximize Profit on Its Toothpaste, It

question 20

Multiple Choice

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where

• A) total costs and total revenues are equal.
• B) marginal revenue is at its highest level.
• C) marginal revenue exceeds marginal cost.
• D) marginal revenue equals marginal cost.
• E) demand is most elastic.

---

Definitions:

Commercial Letter

A document used in international trade, containing information about a transaction or agreement between businesses.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Exchange-Traded Funds

Investment funds that are tradeable on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Contagion

A pattern in which stock markets have become increasingly interconnected around the world and markets in different countries have begun reacting similarly.