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A Firm Should Continue Producing Until

Question 177

Multiple Choice

A firm should continue producing until


A) the cost of producing the output equals the revenues obtainable from selling the output.
B) the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit.
C) average costs are at a minimum.
D) the average cost when another unit is produced equals the average revenue obtainable from selling the extra unit.

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