The level of output produced by a firm is efficient if _____ at that level of output.
A)marginal benefit equals marginal cost
B)total cost equals total revenue
C)fixed cost equals price
D)average variable cost equals average revenue

Question

Quizplus · Accepted Answer

When marginal benefit equals marginal cost, the firm is producing at the point where the additional benefit received from producing one more unit is equal to the additional cost of producing that unit. This is seen as the most efficient level of production, as any deviation from this point would result in a decrease in overall profit.

The Level of Output Produced by a Firm Is Efficient