If profits depend on both how much is produced $($output$)$ and the level of quality, then a profit$-$maximizing firm should choose the levels of output and quality at which

Select one:

a$.$ The marginal revenue of output exceeds the marginal cost of output by the largest amount.

b$.$ The marginal revenue of quality exceeds the marginal cost of quality by the largest amount.

c$.$ The difference between the addition to total revenue and the addition to total cost of the last units of output and quality is the greatest.

d$.$ both a and $b$

e$.$ None of the above.

Clear my choice