A Perfectly Competitive Firm Will Maximise Its Profit at the Rate

question 23

Multiple Choice

A perfectly competitive firm will maximise its profit at the rate of output where the vertical distance between its total revenue and total cost is the largest.This is the same rate of output where

• A)average total cost equals marginal revenue.
• B)marginal revenue equals marginal profit.
• C)marginal revenue equals marginal cost.
• D)marginal revenue equals average revenue.

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