Which of the following is true?

Question

Quizplus · Accepted Answer

The objective of the firm is to maximize profits, and the best way to do this is by producing the amount that equates marginal revenue (the change in revenue from producing one more unit) and marginal cost (the change in cost from producing one more unit). This is where profit is maximized because any additional units produced would have a greater increase in cost than revenue, resulting in a decrease in profit. Therefore, choice D is the correct answer.

Which of the Following Is True