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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
1 Answer
- Anonymous1 decade agoFavorite Answer
e