Which of the following is true about the output level where marginal revenue equals marginal cost?
A)Economic profits are equal to zero.
B)The firm should increase its output.
C)The firm is maximizing profit.

Question

Quizplus · Accepted Answer

The output level where marginal revenue equals marginal cost is the profit-maximizing level of output for a firm in a perfectly competitive market. At this level of output, the firm is neither making economic profits nor incurring losses. Therefore, the correct choice is C.

Which of the Following Is True About the Output Level