Author Question: If price is greater than the average variable cost, a profit-maximizing firm should: A) contract ... (Read 65 times)

jayhills49 · **on:** Jun 29, 2018

If price is greater than the average variable cost, a profit-maximizing firm should:

A) contract production until price is equal to marginal cost.
B) expand production until price is equal to marginal cost.
C) contract production until total revenue is equal to total cost.
D) expand production until total revenue is equal to total cost.

Question 2

People are most likely to make their opinions on a potential piece of legislation known to their representatives when

A) the legislation matters greatly to them, whether or not it affects their private interests.
B) the legislation will affect their private interests substantially.
C) they believe their actions will make enough difference to justify the effort.
D) they can do so at low cost to themselves.