Which is always true at a firm's profit-maximizing rate of production?

Question

Quizplus · Accepted Answer

The profit-maximizing rate of production occurs where Marginal Revenue (MR) equals Marginal Cost (MC). This is because at this point, the firm is producing at a level where the additional revenue gained from producing an additional unit (MR) is equal to the additional cost of producing that unit (MC). This ensures that any further production would lead to a decrease in profits, as MR would be lower than MC. Therefore, D is always true at the firm's profit-maximizing rate of production.

Which Is Always True at a Firm's Profit-Maximizing Rate of Production