The most desirable rate of output for a firm is the output that
A)Minimizes total costs.
B)Maximizes total profit.
C)Minimizes marginal costs.
D)Maximizes total revenue.

Question

Quizplus · Accepted Answer

The most desirable rate of output for a firm is the one that allows them to maximize their total profit. This means producing at the point where marginal revenue equals marginal cost. If the firm produces more or less than this point, their profit will decrease. In other words, at the point where MR=MC, the firm is making the most profit possible.

The Most Desirable Rate of Output for a Firm Is