To Maximize Profits,a Competitive Firm Produces the Output Level at Which

question 94

Multiple Choice

To maximize profits,a competitive firm produces the output level at which

• A)Its total receipts are greatest
• B)Its total costs are minimum
• C)Its marginal cost equals its marginal revenue
• D)Its total costs equal its total receipts
• E)None of the above

---

Definitions:

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, intending to measure the health of a country's economy.

Year

A period of time consisting of 12 months or 365 days, used as a basic unit of time to calculate longer or shorter periods.

Hyperinflation

An extremely rapid and out of control inflation rate where prices increase exponentially over a short period, severely eroding the real value of money.

Creeping Inflation

A situation in which the inflation rate is low and increases slowly over a period of time.