A Firm Sets Its Output Where

question 64

Multiple Choice

A firm sets its output where

• A)marginal profit minus marginal cost equals zero (MP - MC = 0).
• B)marginal revenue minus marginal profit equals zero (MR - MP = 0).
• C)marginal revenue minus marginal cost equals zero (MR - MC = 0).
• D)marginal revenue minus marginal cost is greater than zero (MR - MC > 0)

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Definitions:

Felony

A serious criminal offense that is punishable by a sentence of more than one year in prison or by death.

Misdemeanor

A crime that is less serious than a felony and is punishable by a fine and/or imprisonment for less than one year.

Petty Offense

A minor crime that is usually punishable by a fine or a short term of imprisonment.

Mistake-of-Fact

A misunderstanding of a factual situation that can affect the validity of a contract.