When a firm produces at an output level at which MR = MC,it is operating at the _____ level.

Question

Quizplus · Accepted Answer

Operating at the output level where MR = MC means that the firm is producing the quantity at which the additional revenue from selling one more unit (MR) is equal to the cost of producing that unit (MC). At this level of output, the firm is maximizing its profits, making it the optimal-output level. Therefore, the best choice is C.

When a Firm Produces at an Output Level at Which