The fundamental rule of profit maximization for firms is to produce where:

Question

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The fundamental rule of profit maximization for firms is to produce where marginal revenue (MR) equals marginal cost (MC). At this point, the firm is maximizing its profits as it is producing the quantity of goods that generates the highest difference between total revenue and total cost. ATC minimization or maximizing quantity, price, or total revenue alone does not guarantee profit maximization.

The Fundamental Rule of Profit Maximization for Firms Is to Produce