Assuming Price Is Greater Than Average Variable Cost in the Short-Run

question 54

Multiple Choice

Assuming price is greater than average variable cost in the short-run and that at higher output levels marginal revenue is less that marginal cost, the firm will maximize profit if:

• A) marginal revenue is maximized.
• B) marginal cost is minimized.
• C) marginal profit is maximized.
• D) marginal revenue is equal to marginal cost.
• E) total revenue is equal to total cost.