Profit-maximising producers in a competitive market in general, produce output at a point where:

Question

Quizplus · Accepted Answer

A profit-maximizing producer will produce at a point where marginal cost (MC) equals marginal revenue (MR). When marginal cost is increasing, this means that the producer is producing at a point where the additional cost of producing one more unit is increasing. Therefore, producing more units would result in higher costs than revenue. Hence, choice C is the best option.

Profit-Maximising Producers in a Competitive Market in General, Produce Output