If a profit-maximizing firm is currently producing output where MR = MC in the short run, it should
A) increase output.
B) decrease output.
C) not change output.
D) shut down.

Question

Quizplus · Accepted Answer

When a profit-maximizing firm is producing at a level where marginal revenue (MR) equals marginal cost (MC), it is operating at the optimal output level for maximizing profit in the short run. Therefore, it should not change its output.

If a Profit-Maximizing Firm Is Currently Producing Output Where MR