The principle marginal revenue equal-marginal-cost rule for maximizing profit
A)does not apply to firms in the monopoly or oligopolistic industries.
B)applies only for firm in perfect competition but not in monopolistic competition.
C)applies to new firms but not to existing firms in an industry.
D)applies to all the firms in all industries.

Question

Quizplus · Accepted Answer

The principle marginal revenue equal-marginal-cost rule for maximizing profit applies to all firms in all industries, regardless of the market structure. It is a fundamental rule of profit maximization that states that a firm should produce at the quantity where marginal revenue equals marginal cost in order to maximize profits.

The Principle Marginal Revenue Equal-Marginal-Cost Rule for Maximizing Profit