An isoquant relates the quantity of inputs a firm uses to the quantity of output it can produce. In drawing an isoquant, which of the following assumptions about the firm is made? Show
a) It is a profit-maximizing firm. b) It is a technically efficient firm. c) It is an economically efficient firm. d) It has at least one fixed input. Question 10Suppose a profit-maximizing firm faces a rise in the wage rate it pays. Which of the following would definitely stay the same? a) Its choice of production method. b) The expansion path on which it ends up. c) Its isocost lines. d) Its production function.
About the bookFind out more, read a sample chapter, or order an inspection copy if you are a lecturer, from the Higher Education website Which of the following statement is true when a firm is maximizing its profit?True: Firms maximize profits by producing a quantity where marginal revenue is equal to marginal cost. For a perfectly competitive firm, price is equal to marginal revenue, therefore in the short-run, firms maximize profits by producing the quantity where price equals short-run marginal cost.
Which is always true at a firm's profit maximizing rate of production group of answer choices?The correct answer is option A. Marginal Revenue = Marginal Cost.
What is true about marginal revenue and marginal cost when a firm is maximizing profit?A company that is looking to maximize its profits will produce up to the point where marginal cost equals marginal revenue. When marginal revenue falls below marginal cost, firms typically do a cost-benefit analysis and halt production as it may cost more to sell a unit than what the company will receive as revenue.
Which of the following will be true whenever the marginal revenue is greater than the marginal cost?If marginal revenue is greater than marginal cost, a producer must reduce the level of output to maximize profit.
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Which of the following statements is true when a firm is maximizing its profit
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