In Order to Maximize Profits,a Firm Should Produce at the Output

question 7

Multiple Choice

In order to maximize profits,a firm should produce at the output level for which

• A)average cost is minimized.
• B)marginal revenue equals marginal cost.
• C)marginal cost is minimized.
• D)price minus average cost is as large as possible.

---

Definitions:

Human Ingenuity

The capacity of humans to invent, create, and solve problems using creativity and intelligence.

Output Of Goods

The total quantity of products or services produced by a company, industry, or economy within a specific time period.

Economic Pie

A metaphorical representation of the total wealth or economic output available for distribution or sharing among a population or group.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.