To maximize profits,a firm should produce output up to the point where

Name: To maximize profits,a firm should produce output up to the point where
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Question

Quizplus · Accepted Answer

Maximizing profits requires producing where marginal revenue (MR) is equal to marginal cost (MC). At this output level, the additional revenue from producing one more unit is equal to the additional cost of producing that unit, which means that profits cannot be increased further by producing more or less than this level.

To Maximize Profits,a Firm Should Produce Output Up to the Point