Which of the Following Is True

question 178

Multiple Choice

Which of the following is true?

• A)The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its total revenues and total cost.
• B)The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its average revenue and average total cost.
• C)The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its average revenue and average variable cost.
• D)The objective of the firm is to maximize profits, by producing the amount that maximizes the difference between its marginal revenue and marginal cost.
• E)None of the above is true.

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Definitions:

Libertarians

Individuals who emphasize freedom of choice, political freedom, and voluntary association with small or no government intervention.

Liberals

Individuals or philosophies that emphasize freedom, democracy, individual rights, equality, and consent in the organization of society.

Positive Rights

Rights that require others to provide you with either a good or a service.

Negative Rights

Rights that require others to abstain from interfering with an individual's actions, such as the right to free speech or privacy.