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Questions and Answers
What is the main goal or objective of a firm?
What is the main goal or objective of a firm?
- Minimize profit and maximize the cost
- Break-even point
- Maximize market share
- Maximize profit and minimize the cost (correct)
How is economic profit calculated?
How is economic profit calculated?
- Total revenue minus explicit cost
- Total revenue minus explicit and implicit cost (correct)
- Total cost minus explicit and implicit cost
- Total revenue minus implicit cost
What is the definition of a firm?
What is the definition of a firm?
- An institution that maximizes market share
- An institution that sells goods and services
- An independent unit producing goods and services for sale (correct)
- An institution that minimizes profit
In perfect competition, at which output does the firm maximize profits?
In perfect competition, at which output does the firm maximize profits?
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What is the total approach used to determine the equilibrium of a firm?
What is the total approach used to determine the equilibrium of a firm?
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