Use the Following to Answer Questions

question 230

Multiple Choice

Use the following to answer questions:
Figure: The Marginal Decision Rule
-(Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule. At q₂, or the _____, the _____ price is equal to marginal cost.

• A) minimum-cost output; shut-down
• B) profit-maximizing quantity; market
• C) maximum-cost output; break-even
• D) profit-minimizing quantity; break-even

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