Question
Economics Question on Macroeconomics
Which of the following is the profit-maximizing output level for a firm?
A
The output level at which marginal revenue equals marginal cost.
B
The output level at which average total cost is minimized.
C
The output level at which total revenue is maximized.
D
None of the above
Answer
The output level at which marginal revenue equals marginal cost.
Explanation
Solution
The correct option is (A): Which of the following is the profit-maximizing output level for a firm?