In order to maximize profits,a firm should decrease output whenever total cost exceeds total revenue.

Question

Quizplus · Accepted Answer

In order to maximize profits, a firm should produce the quantity of output where marginal revenue equals marginal cost, not simply decrease output when total cost exceeds total revenue. This is because reducing output beyond that point would result in missed opportunities for revenue and profit maximization.

In Order to Maximize Profits,a Firm Should Decrease Output Whenever