In the short run, which are most important in determining changes in output?
A) marginal costs and marginal revenue.
B) total costs and total revenue.
C) average costs and total revenue.
D) fixed costs.

Question

Quizplus · Accepted Answer

In the short run, firms focus on marginal costs and marginal revenue to determine the optimal level of output where profit is maximized, as this is where marginal cost equals marginal revenue.

In the Short Run, Which Are Most Important in Determining