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1.5.2 The objectives of firms

What output rule gives a firm the greatest possible total profit?

A

Produce where marginal cost equals marginal revenue (MC=MR\text{MC} = \text{MR}MC=MR).

B

Produce where total cost equals total revenue (TC=TR\text{TC} = \text{TR}TC=TR).

C

Produce where average cost equals average revenue (AC=AR\text{AC} = \text{AR}AC=AR).

D

Produce where price equals average cost (P=ACP = \text{AC}P=AC).

1.5.2 The objectives of firms Flashcards

  1. A Level
  2. /Economics
  3. /1.5.2 The objectives of firms

Flashcards for AQA A Level Economics 1.5.2 The objectives of firms, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 23 cards, matched to the AQA A Level Economics (7136) specification.