To Make the Maximum Amount of Profits, a Business Firm

question 46

Multiple Choice

To make the maximum amount of profits, a business firm will:

• A)produce at that output at which its total revenue is maximum.
• B)not have to know anything about least-cost combinations-which make its total cost of production of any output a minimum-in order to set its marginal revenue equal to its marginal cost.
• C)find out how much it costs to produce its product and then set a price which will cover these costs.
• D)use the least-cost combination of factors for whatever output it finally decides to produce.
• E)do none of the above.

---

Definitions:

Endorphins

Natural, pain-relieving chemicals produced by the body that activate opioid receptors, helping to alleviate pain and elicit feelings of pleasure.

Feels Good

A subjective experience of pleasure or satisfaction.

Reuptake

The process by which neurotransmitters are reabsorbed by the neuron that released them, effectively terminating the signal between neurons.

Drug Molecule

A chemical compound that has the potential to interact with biological systems and influence bodily functions, used in medication.