To maximize profit, a firm must always produce at the efficient scale or the minimum cost output. State true or false.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
True

To maximize profit, a firm must always produce at the point where MR=MC. For a firm making profit, this quantity is greater than the efficient scale.

Suggest Corrections

Similar questions

Producing at the output level corresponding to MR=MC will guarantee profits. State true or false.

In the long run, firms under monopoly or oligopoly must only earn normal profits. State true or false.

The cost of a typical unit of output produced is called ATC. State true or false.

For a situation of no profit no loss, cost price must be equal to selling price. State true or false.

Join BYJU'S Learning Program