question
A firm will maximize profit by producing that level of output at which
answer
he additional revenue from the last unit sold equals the additional cost of the last unit & Total revenue exceeds total cost by the largest amount.
question
The function a decision maker seeks to maximize or minimize is the
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Objective function
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When marginal cost is greater than marginal benefit at the current activity level, the decision maker can increase net benefit by decreasing the activity because
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Total cost will fall by more than total benefit will fall
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A firm is deciding whether or not to close down its plant and modernize by installing new technology. Which of the following should management ignore when making the decision?
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How much the present plant cost.
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Which of the following statements represents bad decision making?
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all
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A firm can maximize profit (net benefit) by choosing to produce that level of output at which
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The additional revenue from the last unit sold equals the additional cost of that unit
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In order to minimize the NET cost of theft, a firm should choose the level of theft prevention at which
answer
The marginal benefit of theft prevention equals the marginal cost of preventing theft.
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