To Maximize Profits,a Firm Should Produce Output Up to the Point

question 227

Multiple Choice

To maximize profits,a firm should produce output up to the point where

• A)marginal revenue equals marginal cost.
• B)price equals marginal revenue.
• C)the gap between the demand curve and the ATC is the greatest.
• D)None of the choices are correct.

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Definitions:

Conditional

Involving or implying a condition in logic or mathematics, often expressed in "if... then..." statements that assert the dependency of one event or outcome on another.

Tautology

In logic, a statement that is true in every possible interpretation or a redundant expression that doesn't add informational value.

Disjunct

A component of a disjunction in logic, where the truth of any disjunct is sufficient for the truth of the disjunction.

Disjunction

A logical operation expressing that at least one of its connected statements is true.