Under what condition are profits maximized?

Question

Quizplus · Accepted Answer

Profits are maximized at the rate of output where marginal revenue (the additional revenue from an additional unit sold) equals marginal cost (the additional cost of producing an additional unit). At this point, the firm is producing the optimal amount of units that will generate the greatest profit. If the output level is below this point, the firm could increase profit by producing more units, while if it is above this point, the firm could decrease output to increase profits.

Under What Condition Are Profits Maximized