A Firm Maximizes Profit by Operating at the Level of Output

question 78

Multiple Choice

A firm maximizes profit by operating at the level of output where:

• A) average revenue equals average cost.
• B) average revenue equals average variable cost.
• C) total costs are minimized.
• D) marginal revenue equals marginal cost.
• E) marginal revenue exceeds marginal cost by the greatest amount.

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