In Order to Maximize Profit,a Firm That Produces Its Output

question 37

Multiple Choice

In order to maximize profit,a firm that produces its output in two plants will produce the level of total output at which the last unit of output produced adds the same amount to total revenue as to the

• A)first plant's total cost.
• B)second plant's total cost.
• C)firm's total cost
• D)both a and b

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Definitions:

Corporate Income Taxes

Taxes imposed on the net income of corporations, calculated after deductions for costs, depreciation, and interest.

Elasticity

A general concept measuring the responsiveness of one variable to changes in another variable.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Marginal Tax Rate

The tax rate paid on an additional dollar of income.