Author Question: In order to maximize profits, a firm that can sell all it wants without affecting price should ... (Read 76 times)

EAugust · **on:** Jul 1, 2018

In order to maximize profits, a firm that can sell all it wants without affecting price should produce
a. where average variable costs are minimized.
b. where marginal cost is equal to average variable costs.
c. where marginal cost is equal to price.
d. where marginal cost is a minimum.

Question 2

If a firm wished to maximize total revenues it should produce where
a. marginal cost is zero.
b. marginal revenue is zero.
c. marginal revenue is equal to marginal cost.
d. marginal revenue is equal to price.