Profit Maximization Occurs When

question 149

Multiple Choice

Profit maximization occurs when

• A) a firm expands output until marginal revenue is exceeded by marginal cost.
• B) a firm expands output until marginal revenue is equal to marginal cost.
• C) the price in the market is equal to the firm's marginal revenue.
• D) total costs equal total revenue.
• E) a firm sets the price at a point above average total cost.

---

Definitions:

Joint Decision Procedure

A collaborative process involving two or more parties making a decision together.

Direct Influence

Direct influence involves exerting control or persuading others through straightforward means, without the intermediary of indirect or subtle methods.

No Participation

The absence or refusal of involvement in a particular process or activity.

Autocratic Decision Procedure

A decision-making process where one person holds all the power and makes decisions without input from others.