Assume That a Firm Is Able to Cover Its Variable

question 30

Multiple Choice

Assume that a firm is able to cover its variable costs if it operates in the short run.If marginal cost equals $0 for all output levels,then the firm's profit-maximizing output level occurs where

• A)total cost is minimized
• B)marginal revenue is maximized
• C)marginal revenue is minimized
• D)marginal revenue equals $0
• E)total revenue is minimized

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Definitions:

Internal Revenue Service

The U.S. federal agency responsible for administering and enforcing the tax laws and collecting taxes.

Corporate Officer

Executives who are appointed by a corporation's board of directors to manage the corporation's affairs.

Day-To-Day Operations

The regular, routine activities necessary for a business or organization to function effectively.

Model Business Corporation Act

A standardized set of laws designed to regulate business corporations, serving as a guide for state legislatures in drafting their corporate statutes.