Managers of a firm think at the margin and make incremental adjustments to the level of production.For the managers to be satisfied with the correct level of production,what must result

Question

Quizplus · Accepted Answer

Managers aim to maximize profits, which means that they must produce at the point where marginal revenue equals marginal cost. At this point, the costs are minimized, and the firm is earning the highest profit possible. Therefore, the correct level of production is the one where profit is maximized.

Managers of a Firm Think at the Margin and Make