A profit-maximizing firm in the short run will expand output
A)until marginal cost begins to rise.
B)until total revenue equals total cost.
C)as long as marginal revenue is less than marginal cost.
D)as long as marginal revenue is greater than marginal cost.

Question

Quizplus · Accepted Answer

A profit-maximizing firm will continue to expand output as long as marginal revenue is greater than marginal cost, because this increases profit.

A Profit-Maximizing Firm in the Short Run Will Expand Output