Should a Firm Always Produce the Level of Output Where

question 83

Multiple Choice

Should a firm always produce the level of output where marginal cost is lowest?

• A) Yes.That is the level of output where costs are lowest.
• B) No.That is the level of output where employees are most efficient.
• C) No.Firms should produce where marginal cost equals average variable cost.
• D) No.That might be the best choice,but it depends on the firm's profits.
• E) Yes.Any other level of output will have higher marginal cost.

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