Question about Marginal Cost?
If a competitive firm has a U-shaped marginal cost curve then
a. the profit maximizing output will always generate positive economic profit.
b. the profit maximizing output is found where MC = MR and MC is constant.
c. the profit maximizing output will always generate positive producer surplus.
d. the profit maximizing output is found where MC = MR and MC is decreasing.
e. the profit maximizing output is found where MC = MR and MC is increasing