The Optimal Level of Output May Be Defined as That

question 18

Multiple Choice

The optimal level of output may be defined as that level of output where

• A)average benefit exceeds average cost by the greatest amount.
• B)total benefit equals total cost.
• C)marginal benefit exceeds marginal cost by the greatest amount.
• D)the marginal benefit of the last unit purchased equals its marginal cost.
• E)it is impossible to define optimal in any meaningful way.