The profit maximizing rule applies
A)only when a firm is a price taker.
B)only when a firm is a price maker.
C)to firms in all market structures.
D)to purely competitive firms only.

Question

Quizplus · Accepted Answer

The profit maximizing rule applies to all firms in all market structures, as all firms seek to maximize their profits by producing where Marginal Revenue (MR) equals Marginal Cost (MC). However, the application of the rule may differ depending on the market structure a firm is operating in.

The Profit Maximizing Rule Applies