A Firm Is Producing the Profit-Maximizing Amount of Output When

question 95

Multiple Choice

A firm is producing the profit-maximizing amount of output when it is producing where its ________ curve intersects its ________ curve.

• A)marginal cost;average total cost
• B)marginal cost;average variable cost
• C)marginal cost;marginal revenue
• D)average total cost;average variable cost
• E)total cost;total revenue

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Definitions:

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest from previous periods on a monthly basis.

RRSP

Registered Retirement Savings Plan, a savings account, registered with the Canadian government, that defers income taxes on retirement savings until withdrawal.

Accumulate

The act of gathering or collecting over a period of time, often resulting in an increase in quantity.

Ordinary Annuity

An annuity where the payments are made at the end of each period for a fixed length of time.