A Firm Will Maximize Profits and Revenues at the Same

question 6

Multiple Choice

A firm will maximize profits and revenues at the same price when:

• A) the marginal cost is negligible or zero.
• B) the fixed costs are zero.
• C) the marginal revenue is zero.
• D) the demand for the good is unit elastic.
• E) the demand for the good is highly elastic.

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Definitions:

Independent

A condition where two events have no influence on each other, making their occurrences or outcomes entirely unrelated.

Seat Belts

Safety straps installed in vehicles designed to secure passengers during a collision, reducing the risk of injury or death.

Probability

A measure of the likelihood that a specific event will occur, often expressed as a number between 0 and 1.

Random

Manifesting without any discernible pattern or strategy, happening randomly.