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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Definitions:

Phase Voltage

The amount of voltage measured across a single phase of a three-phase load or power supply.

Line Voltage

The voltage as measured between the lines of a three-phase system.

Delta-Connected

A method of connecting three components of an electrical circuit where each component is connected end-to-end to form a closed loop or triangle.

Phase Current

The amount of current flowing in the phase of a three-phase load or power supply.