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Products are at the maximum for a farm business when output is at a level where
Question

Products are at the maximum for a farm business when output is at a level where

A.

MR = AR

B.

MC = AC

C.

MR = AC

D.

MC = MR

Correct option is D

MC = MR (Marginal Cost = Marginal Revenue) is the condition for maximum profit in a farm business. At this point, the cost of producing an additional unit equals the revenue gained, ensuring optimal resource utilization and profitability.

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