The Rational Rule for Sellers is that sellers should choose the quantity _____ and choose the price _____.
A)that is associated with a minimum average total cost; that is on the seller's demand curve for the quantity
B)that is associated with a minimum average total cost; with maximum marginal revenue
C)where marginal revenue equals marginal cost; that is on the seller's demand curve for that quantity
D)where marginal revenue equals marginal cost; with maximum marginal revenue

Question

Quizplus · Accepted Answer

The Rational Rule for Sellers suggests that the optimal quantity to produce is where marginal revenue equals marginal cost, ensuring profit maximization. The price should be set based on the demand curve for that specific quantity, ensuring the price is what consumers are willing to pay for that quantity.

The Rational Rule for Sellers Is That Sellers Should Choose