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      Question

      A firm maximizes its profit when

      A MC > MR Correct Answer Incorrect Answer
      B MC < MR Correct Answer Incorrect Answer
      C MC = MR Correct Answer Incorrect Answer
      D MR = AP Correct Answer Incorrect Answer

      Solution

      The profit maximization of a firm is achieved when its marginal revenue (MR) is equal to marginal cost (MC) of the additional unit of output.

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