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Commerce · Q293

Economics

Graduate and Post Graduate · Commerce · question 293

Q293

A competitive firm maximizes profit at the output level where

A.
Price equals marginal cost
B.
The slope of the firm's profit function is equal to zero
C.
Marginal revenue equals marginal cost
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A competitive firm maximizes profit at the output level where Price equals marginal cost, The slope of the firm's profit function is equal to zero and Marginal revenue equals marginal cost.