9.If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true? Average total cost < price; marginal cost = marginal revenue Average total cost > price; marginal cost = marginal revenue Average total cost < average revenue; marginal cost > marginal revenue Total cost > total revenue; marginal cost > marginal revenue Total cost = total revenue; marginal cost > marginal revenue
9.If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true? Average total cost < price; marginal cost = marginal revenue Average total cost > price; marginal cost = marginal revenue Average total cost < average revenue; marginal cost > marginal revenue Total cost > total revenue; marginal cost > marginal revenue Total cost = total revenue; marginal cost > marginal revenue
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 15E
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Question
9.If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true?
Average total cost < price; marginal cost = marginal revenue
|
Average total cost > price; marginal cost = marginal revenue
|
Average total cost < average revenue; marginal cost > marginal revenue
|
Total cost > total revenue; marginal cost > marginal revenue
|
Total cost = total revenue; marginal cost > marginal revenue
|
12.A dairy farmer is operating in a
Produce more milk
|
Produce less milk
|
Shut down in the short run
|
Operate in the short run and leave the industry in the long run
|
Insufficient information to determine
|
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