The optimal range of output for a perfectly competitive firm is?

By: |Published on: Oct 23|Categories: Economics JAMB| 0 comments

A. AC is lowest
B. AVC is lowest
C. MC is rising
D. MC is falling

Correct Answer:

Option D – MC is rising

Explanation

The key goal for a perfectly competitive firm in maximizing its profits is to calculate the optimal level of output at which its Marginal Cost (MC) = Market Price (P). Output will be optimal where MC is falling

Users Also Read These:

SEE ALSO  One of the disadvantages of the division of labour is that it?

Copyright warnings! Do not copy.