question
According to the definition of profit, if a profit-maximizing firm will always attempt to produce its desired level of output at the lowest possible cost, then it will
answer
do so regardless of what type of competition exists in a market.
question
I'MABigCorp. produces and sells kitchen wares. Last year, it produced 7,000 can openers and sold each one for $6. To produce the 7,000 can openers, the company incurred variable costs of $28,000 and a total cost of $45,000. I'MABIGCorp.'s average fixed cost to produce the 7,000 can openers was
answer
$2.43
question
The marginal cost curve is generally __, because diminishing marginal returns implies that additional units are ____.
answer
upward-sloping; more costly to produce
question
Whatever the firm's quantity of production, _ must exceed total costs if it is to earn a profit.
answer
total revenue
question
If a firm earns normal profit, then it has generated revenues
answer
equal to the sum of implicit and explicit costs.
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