At what point does a firm determine its output level in the long run?

Show Answers

When the long-run average cost reaches its minimumWhen marginal revenue matches the quantity producedWhen marginal revenue is equal to the long-run marginal costWhen marginal cost is the same as the output level

Explanation

The firm's optimal long-run output is established where marginal revenue equals long-run marginal cost, ensuring profit maximization. Other options, such as minimizing long-run average cost or equating marginal revenue to output, do not accurately define the profit-maximizing output.