Explain.True or False: A profit maximising firm will select a level of output where average cost = average revenue.?
False. You will maximize profit at the point that Marginal Revenue and Marginal Cost are equal.
Good luck!True or False: A profit maximising firm will select a level of output where average cost = average revenue.?
This is a really bad way to get your homework done. Think about it...if you have something you want to sell to make lots of $$ are you only going to charge cost?
False, Revenue should be higher than cost. :)
The difference between the two (revenue - cost) is profit.
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