Question:

Profits are maximized when the firm

A.

captures the largest market share in its market

B.

produces at an output level where marginal revenue exceeds marginal cost

C.

produces at the output level where marginal revenue equals marginal cost

D.

produces at the output level where total revenue is maximized

Answer» c. produces at the output level where marginal revenue equals marginal cost

Question:

Which of the following statement is TRUE with regard to total utility

A.

total utility is the utility derived from last unit

B.

total utility increases at a diminishing range

C.

as consumption increases total utility goes on diminishing

D.

at saturation point total utility is negative

Answer» b. total utility increases at a diminishing range