Suppose a Firm Produces the Level of Output at Which

question 82

Multiple Choice

Suppose a firm produces the level of output at which the marginal cost of the last unit produced equals the price of the good. Which of the following statements is always true?

• A)The firm should shutdown if its total revenue is less than its variable cost.
• B)The firm will earn a positive economic profit.
• C)The firm is maximizing its profit.
• D)The firm should produce more if its economic profit is positive.

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