The goal of the manager of a firm is sales maximization.The firm will produce
A)the output level at which MR = 0.
B)as much output as it can.
C)the same output that it would if the goal was profit maximization.
D)the same output that it would if the goal was cost minimization.

Question

Quizplus · Accepted Answer

When a firm's goal is sales maximization, it will produce up to the point where marginal revenue (MR) equals zero, as this is where total revenue is maximized.

The Goal of the Manager of a Firm Is Sales