Question

For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the

A average total cost curve Correct Answer Incorrect Answer
B average variable cost curve Correct Answer Incorrect Answer
C marginal cost curve Correct Answer Incorrect Answer
D marginal revenue curve Correct Answer Incorrect Answer
E average fixed cost curve Correct Answer Incorrect Answer

Solution

Profit maximizing condition is Price = MC = MR for a firm in a competitive market.

Practice Next
×
×