Inputs in production processes are called resources

Discuss the Coasian reasoning with an example

In the standard model of pure competition, a profit-maximizing firm will produce the output quantity in the short run where the gap between:

A. Marginal revenue and marginal cost is the largest, with revenue higher than cost B. Average revenue and average cost is the largest, with revenue higher than cost C. Total revenue and total cost is the largest, with revenue higher than cost D. Average revenue and average variable cost is the largest