10 multiple choice 4 points part 1: main idea marginal revenue equals marginal cost product price total cost…

10 multiple choice 4 points part 1: main idea marginal revenue equals marginal cost product price total cost total profit 11 multiple choice 4 points part 1: main idea profit - maximizing output is the point at which increasing returns change to diminishing returns variable costs change to fixed costs marginal revenue and total revenue are equal marginal revenue and marginal cost are equal

10 multiple choice 4 points part 1: main idea marginal revenue equals marginal cost product price total cost total profit 11 multiple choice 4 points part 1: main idea profit - maximizing output is the point at which increasing returns change to diminishing returns variable costs change to fixed costs marginal revenue and total revenue are equal marginal revenue and marginal cost are equal

Answer

Brief Explanations:

  • For question 10: Marginal revenue is the change in total revenue from selling one - more unit. In a perfectly competitive market, in the short - run equilibrium, marginal revenue equals product price.
  • For question 11: The profit - maximizing output level for a firm occurs where marginal revenue (MR) equals marginal cost (MC). If MR>MC, the firm can increase profit by producing more; if MR<MC, the firm can increase profit by producing less.

Answer:

  1. product price
  2. marginal revenue and marginal cost are equal