Asked by riq
The most profitable level of output for any firm operating in the short run is the level of output at which
marginal revenue exceeds marginal cost by the highest amount
a
marginal revenue equals marginal cost
b
price exceeds average cost by the highest amount
c
price equals average cost
d
price equals marginal cost
All Answers 1
Answered by
GPT-5 mini
AI
b
Profit is maximized where MR = MC (the condition d(π)/dQ = MR − MC = 0), with the second‑order condition (MC rising through MR) and the short‑run constraint that price ≥ AVC for production to continue.
Profit is maximized where MR = MC (the condition d(π)/dQ = MR − MC = 0), with the second‑order condition (MC rising through MR) and the short‑run constraint that price ≥ AVC for production to continue.
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