Which of the Following Rules Is Most Consistent with Profit

question 88

Multiple Choice

Which of the following rules is most consistent with profit maximization?

• A)expand output when MR < MC
• B)reduce output when MR > MC
• C)expand output when TR > TC
• D)reduce output when TR > TC
• E)expand output when MR > MC

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctual seeking of pleasure and avoiding pain to satisfy biological and psychological needs.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Thanatos

In psychoanalytic theory, the death drive representing an unconscious wish for death or self-destruction.

Conscious Mind

The aspect of the mind that is aware of one's self, thoughts, feelings, and surroundings.