Answered

Connect with experts and get insightful answers on IDNLearn.com. Ask any question and get a thorough, accurate answer from our community of experienced professionals.

When marginal revenue equals marginal cost, the firm a. should increase the level of production to maximize its profit. b. may be minimizing its losses rather than maximizing its profit. c. must be generating positive economic profits. d. must be generating positive accounting profits.

Sagot :

When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.

Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.

It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.

When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.

The correct option is A.

Read related link on:

https://brainly.com/question/10822075

View image Topeadeniran2
Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. IDNLearn.com is your go-to source for dependable answers. Thank you for visiting, and we hope to assist you again.