If a Firm Is Producing a Level of Output Where

Multiple Choice

If a firm is producing a level of output where marginal cost is equal to marginal revenue, then

A) profit is at a maximum if marginal cost has a negative slope and marginal revenue is horizontal.
B) profit is at a minimum if marginal cost has a negative slope and marginal revenue is horizontal.
C) profit is at a maximum if average revenue is greater than average cost.
D) profit is at a minimum if average revenue is greater than average cost.