CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

One of the two conditions for profit maximization is to produce the quantity of output at which ______.

I. MP = MC
II. MRP = MC
III. MR = MC
IV. MR = W (wage rate)
Correct Answer: III

For profit maximization, produce the quantity of output at which marginal revenue (MR) equals marginal cost (MC).

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