A firm that has as its objective the maximization of revenues rather than profits would produce an output level for which: Select one: a. marginal revenue is equal to zero b. total revenue is equal to total cost c. marginal revenue is equal to average cost d. marginal revenue is equal to price In the short run, a firm should continue to operate, even if it is incurring losses, provided: Select one: a. the firm can cover its variable costs b. the firm can cover its fixed costs c. none of the above

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A firm that has as its objective the maximization
of revenues rather than profits would produce an
output level for which: Select one:
a. marginal revenue is equal to zero
b. total revenue is equal to total cost
c. marginal revenue is equal to average cost
d. marginal revenue is equal to price
In the short run, a firm should continue to
operate, even if it is incurring losses, provided:
Select one:
a. the firm can cover its variable costs
b. the firm can cover its fixed costs
c. none of the above
d. the firm can cover the sum of its variable and
fixed costs
Transcribed Image Text:A firm that has as its objective the maximization of revenues rather than profits would produce an output level for which: Select one: a. marginal revenue is equal to zero b. total revenue is equal to total cost c. marginal revenue is equal to average cost d. marginal revenue is equal to price In the short run, a firm should continue to operate, even if it is incurring losses, provided: Select one: a. the firm can cover its variable costs b. the firm can cover its fixed costs c. none of the above d. the firm can cover the sum of its variable and fixed costs
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