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Which of the following are true about the profit-maximizing rule of MR = MC? (check all that apply) A) The rule applies only if producing is preferable to shutting down. (B) In some cases, MR will equal MC at a fractional level of output and therefore the last complete unit of output should be produced where MR < MC. (C) The rule can be restated as P = MC when applied to a purely competitive firm because product price and MR are equal. (D) The rule is an accurate guide to profit maximization for all firms regardless of their market structure.

Which of the following are true about the profit-maximizing rule of MR = MC? (check all that apply) A) The rule applies only if producing is preferable to shutting down. (B) In some cases, MR will equal MC at a fractional level of output and therefore the last complete unit of output should be produced where MR < MC. (C) The rule can be restated as P = MC when applied to a purely competitive firm because product price and MR are equal. (D) The rule is an accurate guide to profit maximization for all firms regardless of their market structure.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following are true about the profit-maximizing rule of MR = MC? (check all that apply) A) The rule applies only if producing is preferable to shutting down. (B) In some cases, MR will equal MC at a fractional level of output and therefore the last complete unit of output should be produced where MR < MC. (C) The rule can be restated as P = MC when applied to a purely competitive firm because product price and MR are equal. (D) The rule is an accurate guide to profit maximization for all firms regardless of their market structure.
Transcribed Image Text:Which of the following are true about the profit-maximizing rule of MR = MC? (check all that apply) A) The rule applies only if producing is preferable to shutting down. (B) In some cases, MR will equal MC at a fractional level of output and therefore the last complete unit of output should be produced where MR < MC. (C) The rule can be restated as P = MC when applied to a purely competitive firm because product price and MR are equal. (D) The rule is an accurate guide to profit maximization for all firms regardless of their market structure.
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