The profit- maximising output will never be greater than the (profit- satisficing) sales revenue- maximising output.

Question

Quizplus · Accepted Answer

The profit-maximizing output is the output level at which the firm's profit is maximized. The sales revenue-maximizing output is the output level at which the firm's sales revenue is maximized. The profit-maximizing output will never be greater than the sales revenue-maximizing output because the profit-maximizing output is the output level at which the firm's marginal cost equals its marginal revenue, and the sales revenue-maximizing output is the output level at which the firm's marginal revenue equals zero.

The Profit- Maximising Output Will Never Be Greater Than the (Profit-