Multiple Choice
Suppose a firm produces the level of output at which the marginal cost of the last unit produced equals the price of the good. Which of the following statements is always true?
A) The firm should shutdown if its total revenue is less than its variable cost.
B) The firm will earn a positive economic profit.
C) The firm is maximizing its profit.
D) The firm should produce more if its economic profit is positive.
Correct Answer:
Verified
Correct Answer:
Verified
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