1. A firm will maximize profit by producing that level of output at which?
A. the additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount.
B. the additional revenue from the last unit sold equals the additional cost of the last unit.
C. total revenue exceeds total cost by the largest amount
D. total revenue equals total cost.
E. both b and c.
2. In order to minimize the NET costs associated with crime?
A. steps must be taken to eliminate the all crime.
B. crime should be reduced to the level at which the total benefit from crime equals the total cost of crime prevention.
C. crime should be reduced to the level at which the marginal cost from crime equals the marginal cost of crime prevention
D. no crime should be eliminated.
3.In order to minimize the net cost of pollution reduction, the level of pollution reduction (the amount of a pollutant not released into the environment) should be the level at which?
A. the marginal benefit of reducing pollution exceeds the marginal cost of reducing pollution by greatest possible amount.
B. the total benefit of reducing pollution equals the total cost of reducing pollution.
C. the marginal benefit of reducing pollution equals the marginal cost of reducing pollution.
D. the total cost of reducing pollution is minimized and the total benefits of reducing pollution are maximized.
1. A firm will maximize profit by producing that level of output at which?
A. the additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount.
B. the additional revenue from the last unit sold equals the additional cost of the last unit.
C. total revenue exceeds total cost by the largest amount
D. total revenue equals total cost.
E. both b and c.
2. In order to minimize the NET costs associated with crime?
A. steps must be taken to eliminate the all crime.
B. crime should be reduced to the level at which the total benefit from crime equals the total cost of crime prevention.
C. crime should be reduced to the level at which the marginal cost from crime equals the marginal cost of crime prevention
D. no crime should be eliminated.
3.In order to minimize the net cost of pollution reduction, the level of pollution reduction (the amount of a pollutant not released into the environment) should be the level at which?
A. the marginal benefit of reducing pollution exceeds the marginal cost of reducing pollution by greatest possible amount.
B. the total benefit of reducing pollution equals the total cost of reducing pollution.
C. the marginal benefit of reducing pollution equals the marginal cost of reducing pollution.
D. the total cost of reducing pollution is minimized and the total benefits of reducing pollution are maximized.
