Solved

When a Competitive Firm Has Reached a Level of Output

Question 18

Multiple Choice

When a competitive firm has reached a level of output at which the marginal revenue product of each input is equal to the price of that input it:


A) is producing that output at least possible cost, but is not necessarily at maximum-profit output level.
B) is at its maximum-profit output level, but is not necessarily producing that output at least possible cost.
C) is at maximum-profit output level and is producing that output at least possible cost.
D) is not necessarily either at maximum-profit level of output or at least possible cost for that output.
E) is none of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents