If Total Output Is Calculated by Adding Up the Market

question 44

Multiple Choice

If total output is calculated by adding up the market value of goods and services produced, then more expensive items:

• A)receive the same weight as cheaper items.
• B)receive a greater weight than cheaper items.
• C)receive a smaller weight than cheaper items.
• D)are double counted.

---

Definitions:

Profit-Maximizing

A company's goal to achieve the highest profit possible given its products, market conditions, and operational costs.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

TC

Total Cost, which is the total expense incurred in reaching a particular level of output.

Profit-Maximizing

The act of adjusting production and sales to achieve the highest possible profit under given market conditions.