Which of the Following Must Be True If a Price-Searcher

question 57

Multiple Choice

Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?

• A) The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale.
• B) The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale.
• C) The total cost of producing all units is no greater than the total revenue derived from the sale of the units.
• D) The total cost of producing all units is less than the total revenue derived from the sale of the units.

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making and problem-solving.

Logarithms

The mathematical operation that determines the power to which a base number is raised to obtain a certain value.

Convergence

Binocular depth perception cue; the rotation of the two eyes in their sockets to focus on a single object, resulting in greater convergence for closer objects and lesser convergence if objects are distant.

GPS Location

A system that uses satellite signals to determine the precise location of a device or individual on Earth.