Suppose a firm finds it is better off operating than shutting down in the short run.At the quantity at which marginal cost equals marginal revenue,_____

Question

Quizplus · Accepted Answer

At the point where marginal cost equals marginal revenue, the firm is producing at the level where the next unit produced will add as much value to revenue as it costs to produce it. This means the firm is maximizing its profit, as any change in production levels would result in a decrease in profit. Therefore, choice C is correct.

Suppose a Firm Finds It Is Better Off Operating Than