Multiple Choice
Firms in the model of perfect competition will:
A) maximize total revenue by using the marginal decision rule.
B) increase output up to the point that the marginal benefit of an additional unit of output is greater than the marginal cost.
C) increase output up to the point that the marginal benefit of an additional unit of output is equal to the marginal cost.
D) always attempt to minimize average variable cost.
Correct Answer:
Verified
Correct Answer:
Verified
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