Question

​ Which of the following is FALSE?

a. ​Average cost is total cost per unit of production
b. ​Produce where MR=AC
c. ​Increase production if MR>MC
d. ​Produce where MR=MC

Answer 1

b. ​Produce where MR=AC

Step-by-step explanation:

b. ​Produce where MR=AC

This statement is wrong because for profit maximization the firm should produce when MR=MC, by producing at MR=AC the firm is not maximizing its profits.