If marginal revenue equals marginal cost, the firm is maximizing profits as long as
A. the resulting profits are positive.
B. marginal cost exceeds marginal revenue for greater levels of output.
C. the average cost curve lies above the demand curve.
D. All of the above are required.
Answer:B
If marginal revenue equals marginal cost, the firm is maximizing profits as long as
A. the resulting profits are positive. B. marginal cost exceeds marginal revenue for greater levels of output. C. the average cost curve lies above the demand curve. D. All of the above are required.