From the profit maximization perspective

Assignment Help Business Economics

Reference no: EM13833138

From the profit maximization perspective, under which condition does it make sense to expand the level of output in the short-run?

A. when the marginal cost exceeds the marginal revenue

B. when the marginal cost is equal to the marginal revenue

C. when the marginal cost is less than the marginal revenue

D. none of the above as the marginal cost to marginal revenue comparison has nothing to do with profit maximization

Reference no: EM13833138

Questions Cloud

Modern view of stabilization : Despite ongoing debates about the appropriateness of macroeconomic policies, many macroeconomists have reached a modern consensus on several important issues.

What is the price elasticity of labor supply : Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?

A monopolistically competitive firm : A monopolistically competitive firm:

Compose the index of leading economic indicators : Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic ind..

From the profit maximization perspective : From the profit maximization perspective, under which condition does it make sense to expand the level of output in the short-run?

Equivalence for repeated cash flows : A company can earn 6% on their investments. How much should the company invest today to be able to fund two $2,500 projects each year for the next 10 years?

Dollar spent on capital generated : If the last dollar spent on capital generated $1.05 in return while the last dollar spent on labor generated $0.99 in return, then in the long-run the firm should

What can companies do to foster an ethical environment : The Sarbanes-Oxley Act came about as a result of the Enron scandal. What did that company do? What can companies do to foster an ethical environment? Give examples of what YOUR company does to promote an ethical environment.

Necessary requirement to turn a business idea into business : What is the necessary requirement to turn a business idea into a business? If you don't have customers willing to buy your new product or service at a price that gives you a profit, do you really have a business?

User Account

All Pages