In the Short Run, a Profit-Maximizing Firm's Decision to Produce

question 211

Multiple Choice

In the short run, a profit-maximizing firm's decision to produce should be guided by whether

• A)it makes a profit.
• B)its marginal profit is maximized.
• C)its total revenue exceeds its fixed cost.
• D)its total revenue covers its variable cost.

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Definitions:

NRA "Production Codes"

The NRA "Production Codes," also known as the Hays Code, were guidelines for film content that aimed to regulate moral and ethical standards in movies, established by the National Recovery Administration during the 1930s.

Social Insurance

A government-sponsored program designed to ensure individuals against economic risks (such as loss of income due to sickness, unemployment, or old age) by pooling resources.

Works Progress Administration

A key part of the New Deal, it was a large federal agency created in 1935 to provide jobs for unemployment relief through public works projects.