In maximizing profit, a firm will always produce that output where total revenues are at a maximum.

Name: In maximizing profit, a firm will always produce that output where total revenues are at a maximum.
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Question

Quizplus · Accepted Answer

A firm maximizes profit where marginal cost equals marginal revenue, not necessarily where total revenues are at a maximum. Total revenue maximization does not account for the costs of production.

In Maximizing Profit, a Firm Will Always Produce That Output