A firm maximizes profit by producing the output at which marginal cost equals

Question

Quizplus · Accepted Answer

Maximizing profit requires producing at the point where marginal cost equals marginal revenue. This is because producing more than this point means that the marginal cost exceeds the marginal revenue, reducing profits, while producing less than this point means that the marginal revenue exceeds the marginal cost, also reducing profits. So, the optimal production level occurs where the two are equal.

A Firm Maximizes Profit by Producing the Output at Which