The Figure Given Below Shows Three Short Run Average Total

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-A firm wishing to maximize profits will produce at the level of output where:

A) marginal cost is equal to zero.
B) its total cost curve intersects its total revenue curve.
C) its costs are at a minimum.
D) total revenue exceeds total cost by the largest amount.
E) marginal revenue exceeds marginal cost by the greatest amount.