Use the Following to Answer Question(s)

question 218

Multiple Choice

Use the following to answer question(s) :
Exhibit: Total Revenue, Total Cost, and Economic Profit

-(Exhibit: Total Revenue, Total Costs, and Economic Profit) The firm maximizes economic profit when the _______ of the total revenue and total cost curves are _______ and when _______ and ________ are equal.

• A) slopes; as far apart as possible; marginal revenue; marginal cost
• B) quantities; equal; marginal product; marginal cost
• C) slopes; equal; marginal revenue; marginal cost
• D) slopes; equal; marginal revenue; marginal product

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Definitions:

Preexisting Duty Rule

A legal principle stating that an agreement to do something that one is already legally obligated to do is not valid consideration for a new contract.

Superlative Work

Work of the highest quality or degree, demonstrating excellence or outstanding performance.

Bargained-For Exchange

A legal principle where both parties to a contract must provide something of value as part of the agreement.

Nominal Consideration

A token amount in a contract to acknowledge the agreement, without intending it to be a true reflection of the value exchanged.