Profits are maximized when A) price equals marginal revenue. B) ...

[pragya sharda]

Profits are maximized when
 A) price equals marginal revenue.
  B) marginal revenue equals average total costs.
  C) marginal revenue equals marginal cost.
  D) when price equals average total costs.

Question 2

What is a utility possibility frontier?

[otokexnaru]

Answer to Question 1

C

Answer to Question 2

The utility possibility frontier shows the possible combinations of utility that an efficient bargain can get the two parties. It shows the potential benefits to the bargainers and how to identify strategies that make them both better off. However, it does not suggest any theory that might help predict where two bargainers will end up.