Whenever the Additional Revenue from the Last Unit of Output

question 22

Multiple Choice

Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit,a profit-maximizing firm should

• A)do nothing,the firm is making profits.
• B)produce less in order to increase profits.
• C)produce more in order to increase profits.
• D)think about investing in another industry.

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Definitions:

FUTA

Federal Unemployment Tax Act; a United States federal law that imposes a payroll tax on businesses to fund state workforce agencies.

SUTA

State Unemployment Tax Act, a U.S. federal law that imposes a payroll tax on employers to fund the unemployment compensation program.

Form 941

A tax form used by employers to report quarterly federal payroll taxes, including amounts withheld from employees' paychecks and the employer's portion of social security and Medicare taxes.

Social Security

Government program that provides financial assistance to people with an inadequate or no income.