GoPro video camera company wants to maximize its profit on their popular Hero4 video camera. Which of the following would be the best action for GoPro to achieve its profit maximization goal?
a. Manufacture GoPro Hero4 cameras at the point where marginal cost equals marginal revenue.
b. Price the Hero4 at the level where average revenue equals average cost.
c. Price the Hero4 at the level where average cost is the lowest.
d. Price the Hero4 at the level where marginal revenue is the lowest.
Answer: a. Manufacture GoPro Hero4 cameras at the point where marginal cost equals marginal revenue.