Question

your friend hector owns a pet food shop in town, which is a competitive market in your community. hector knows you're taking an economics course, so hector asks you what quantity of pet food to produce in order to maximize profit. which is the best response to hector's question?

Answer 1

a. Produce the quantity that minimizes the average total cost of production.

B. Produce where the marginal revenue is equal to the market price for each pet food sold.

C. Produce the maximum quantity the size of the pet foodshop will allow.

D. Produce the quantity where the marginal cost of producing the last unit equals the marginal revenue of producing that unit.

Explanation: Answer is D