The MR = MC rule applies
A) in the short run but not in the long run.
B) in the long run but not in the short run.
C) in both the short run and the long run.
D) only to a purely competitive firm.

Question

Quizplus · Accepted Answer

The MR = MC rule, which states that firms maximize profit by producing where marginal revenue equals marginal cost, applies to all firms in both the short run and the long run, regardless of market structure.

The MR = MC Rule Applies