If a Firm Chooses to Produce Output at the Point

question 108

Multiple Choice

If a firm chooses to produce output at the point where MR equals MC,

• A)then TR - TC will be maximized if there is a profit
• B)economic profits will be zero
• C)there will be positive accounting profits
• D)there will be positive economic profits
• E)average cost must equal average revenue

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Definitions:

Inadmissible Arguments

Arguments that are not accepted in a rational debate or legal proceeding due to their irrelevance, fallacy, or violation of rules.

Admissible Arguments

In logic and argumentation theory, arguments that are logically sound, relevant, and sufficient to justify a conclusion.

Admonition

A warning or piece of advice given with gentle disapproval or caution.

Relevant Attitudes

Refers to attitudes that are directly related to and influence an individual’s behavior or decision-making process in specific contexts.