The optimal level of output may be defined as that level of output where:
a. the marginal benefit of the last unit purchased equals its marginal cost.
b. total benefit equals total cost.
c. it is impossible to define optimal in any meaningful way.
d. average benefit exceeds average cost by the greatest amount.
e. marginal benefit exceeds marginal cost by the greatest amount.
a. the marginal benefit of the last unit purchased equals its marginal cost.
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Which of the following are examples of situations with negative network externalities?
A. All of the above B. A crowded beach C. Clothing made to order D. A rare work of art
The breakfast cereal industry has a four-firm concentration ratio of 80 percent. Is this enough information to classify the industry as an oligopoly? Is a high concentration ratio evidence that an industry is not competitive?
What will be an ideal response?