At any quantity of output above the intersection of the marginal revenue and marginal cost curves:
A)MR is lower than MC.
B)profits are not being maximized.
C)ATC is higher than AVC.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

At the intersection of the marginal revenue and marginal cost curves, MR=MC and the firm is producing at the profit-maximizing level. 
Any quantity of output above this intersection point will result in: 
A) MR being lower than MC, meaning that the firm is losing potential profit by producing more. 
B) Profits are not being maximized since the firm is producing at a level where the cost of producing the last unit is higher than the revenue gained from selling it. 
C) ATC is higher than AVC, indicating that the firm is making losses on each unit produced. Therefore, all three statements are true at any quantity of output above the intersection point of the MR and MC curves.

At Any Quantity of Output Above the Intersection of the Marginal