The managerial decision that emerges from the microeconomic profit maximization model is: A)Marginal Costs Marginal Costs D)Marginal Costs = Marginal Revenue

Question

The managerial decision that emerges from the microeconomic profit maximization model is:
A)Marginal Costs < Marginal Revenues
B)Marginal Costs = Profits
C)Marginal Revenues > Marginal Costs
D)Marginal Costs = Marginal Revenue

Quizplus · Accepted Answer

In microeconomics, the profit maximization condition for firms is when marginal cost equals marginal revenue (MC = MR). This is the point where producing one more unit would not increase profit, as the cost of producing that unit equals the revenue it generates.

The Managerial Decision That Emerges from the Microeconomic Profit Maximization