Marginal Revenue Equals Marginal Cost at an Output of 10

question 62

Multiple Choice

Marginal revenue equals marginal cost at an output of 10 units. At this output, marginal revenue equals $25, average variable cost equals $30, and average total cost equals $40. In the short run, a profit-maximizing firm will earn a profit of

• A) -$150.
• B) -$100.
• C) $0.
• D) $150.

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