The expected- profit- maximization rule sets ________ equal to _______and is an_______ .

Question

Quizplus · Accepted Answer

The expected-profit-maximization rule sets the expected marginal revenue equal to the expected marginal cost, and is an operational guideline. This allows the firm to make decisions based on the expected profitability of a given level of production, rather than simply maximizing revenues or minimizing costs. Therefore, option A is the correct choice. Option B is incorrect because it leaves out the expected aspect of marginal revenue, which is important for decision-making. Option C is incorrect because it sets the expected marginal revenue to the marginal cost, which does not necessarily lead to profit-maximization. Option D is incorrect because it suggests that profit-maximization is an easily obtainable goal, which is not always the case.

The Expected- Profit- Maximization Rule Sets ________ Equal to _______And

The Expected- Profit- Maximization Rule Sets __ Equal to _And