Multiple Choice
In order to maximize profits, a firm in perfect competition will produce a level of output:
A) consistent with the lowest point on the average total cost curve.
B) where the difference between price and average cost is the greatest.
C) where the marginal cost and average total cost curves intersect.
D) where the price equals the extra cost of producing one more unit.
Correct Answer:
Verified
Correct Answer:
Verified
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