Bubba's Bait and Tackle is maximizing profits, so it must be producing where A) MR MC. B) MR

Name: Bubba's Bait and Tackle is maximizing profits, so it must be producing where A) MR > MC. B) MR < MC. C) MR = MC. D) MR = 0.
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Question

Bubba's Bait and Tackle is maximizing profits, so it must be producing where
A) MR > MC.
B) MR < MC.
C) MR = MC.
D) MR = 0.

Quizplus · Accepted Answer

For a firm to maximize profits, it should produce at the level where marginal revenue (MR) equals marginal cost (MC). This ensures that the cost of producing one more unit is exactly balanced by the revenue it generates, optimizing profit.

Bubba's Bait and Tackle Is Maximizing Profits, So It Must