Question

can you explain why its right

1. A rational seller will sell another unit of output if the cost of making another unit is less than (or to) the revenue gained from selling another unit 2. Your neighbor has hired you to take care his dog, it takes one hour to do the work. You work 8 hours a day and make 10 dollars an hour, how much are you going to . charge? 3. Which of the following best explains why you are more likely to see a poor person than a wealthy person picking up aluminum cans? 4. SKIP 5. As the market price of a service increases more potential sellers will decide to perform that services because... The most important challenge facing a firm is a perfectly competitive market is deciding 6. 7. Which of the following statements is true for both Microsoft and a locally owned restaurant? 8. Which of the following is a defining characteristic in a perfectly competitive market? 9. If the market for butter is perfectly competitive, then the demand curve facing that firm will be 10. One implication of the shape of the demand curve facing a perfectly competitive firm is that 11. A fixed factor of production 12. To produce 150 units of output a firm must use 3 to 4 employees per day, to produce 300 units of outputs the firm use 8 employees per day, apparently the firm is what

Answer 1

Profit maximization for any type of firm is Marginal revenue equals Marginal cost. The Marginal cost should be equal for less than the marginal revenue. Economic decisions are made at the margin. Marginal cost is the additional cost of producing one more unit. Marginal revenue is the additional revenue of producing one more unit. The firm will produce as long as the marginal cost equals the marginal revenue, otherwise, it cannot maximize its profit. If MC is > MR then the firm will cutback on its production.