Consider the following conditions of Profit Maximisation:
1. The price, p, must equal Marginal Cost.
2. Marginal cost must be non-decreasing at q0
3. For the firm to continue to produce, in the short run, the price must be greater than the average variable cost
4. For the firm to continue to produce, in the long run, the price must be greater than the average cost
Which of the above statements are correct?
1
1 and 2 only
2
1, 2 and 3 only
3
3 and 4 only
4
1, 2, 3 and 4