A firm maximizes profit when it produces output up to the point where marginal cost equals marginal revenue.

Name: A firm maximizes profit when it produces output up to the point where marginal cost equals marginal revenue.
Brand: Quizplus
Rating: 4.9 (62 reviews)

Question

Quizplus · Accepted Answer

This is known as the profit-maximizing rule in microeconomics. When a firm produces up to the point where marginal cost equals marginal revenue, it is able to allocate resources in the most efficient way possible and earn the highest possible profit.

A Firm Maximizes Profit When It Produces Output Up to the Point