A Need for Intervention by Policy Makers Will Generally Lead

question 56

Multiple Choice

A need for intervention by policy makers will generally lead to:

• A) unconscionable conduct.
• B) less regulations.
• C) public intervention.
• D) public policy.

---

Definitions:

MR = MC Rule

An economic principle that states a firm will maximize its profit when its marginal revenue equals its marginal cost.

Additional Unit

Refers to the next unit of a good or service to be produced or consumed, often discussed in the context of marginal analyses, such as marginal cost or marginal utility.

MR = MC Rule

The MR=MC rule states that profit maximization occurs when a firm produces at a level where marginal revenue equals marginal cost.

Price Taker

A market participant that accepts market prices as given and cannot influence those prices.