In order to maximize its profits,a firm will produce an output at which the marginal revenue equals the marginal cost.

Name: In order to maximize its profits,a firm will produce an output at which the marginal revenue equals the marginal cost.
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Question

Quizplus · Accepted Answer

This statement is true as a firm aims to produce at the point where the additional revenue earned from selling one more unit of output (marginal revenue) equals the additional cost of producing that unit (marginal cost), as this results in maximum profit.

In Order to Maximize Its Profits,a Firm Will Produce an Output