-If the firm is maximizing profits (minimizing losses) ,this firm charges a price of _____.

Question

-If the firm is maximizing profits (minimizing losses),this firm charges a price of _____.

Quizplus · Accepted Answer

A firm maximizes profits (or minimizes losses) by producing at a level where marginal cost (MC) equals marginal revenue (MR). The price charged corresponds to the demand at that quantity, not directly to the MC or MR. Without specific data on MC, MR, and the demand curve, it's impossible to determine the exact price. However, in typical profit-maximization scenarios, firms set prices based on where their production quantity (determined by MC=MR) intersects the demand curve. This answer assumes familiarity with such economic principles and the context of the question, which is not provided.

-If the Firm Is Maximizing Profits (Minimizing Losses),this Firm Charges