A firm that is maximizing profits by producing at an output level at which marginal revenue, marginal cost and average variable cost are equal to $20, then that firm:
A) is just breaking even.
B) should increase production in order to reduce average total cost.
C) should shut down.
D) should reduce production in order to raise the price of the product.

Question

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The Answer of A firm that is maximizing profits by producing at an output level at which marginal revenue, marginal cost and average variable cost are equal to $20, then that firm:
A) is just breaking even.
B) should increase production in order to reduce average total cost.
C) should shut down.
D) should reduce production in order to raise the price of the product.

A Firm That Is Maximizing Profits by Producing at an Output