What Is the Profit Maximizing Condition for a Vertically Integrated

question 15

Multiple Choice

What is the profit maximizing condition for a vertically integrated firm?

• A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs.
• B) Marginal revenue equals the marginal cost of the final output.
• C) Net marginal revenue equals the marginal cost of each intermediate good.
• D) The sum of net marginal revenues equals the marginal cost of the final output.