Firms maximize profit where: A. average revenue is greater than average cost. B. marginal revenue is equal to marginal cost. C. marginal revenue is greater than marginal cost. D. marginal revenue is less than marginal cost. E. average revenue is equal to average cost.
Added by Sipho R.
Step 1
This means they want to increase their total revenue as much as possible while keeping their total costs as low as possible. Second, average revenue is simply total revenue divided by the quantity of output. Average cost is total cost divided by the quantity of Show more…
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