Answered

Join IDNLearn.com to access a wealth of knowledge and get your questions answered by experts. Find reliable solutions to your questions quickly and easily with help from our experienced experts.

How does a seller maximize profit at marginal revenue being equal to marginal cost?

Sagot :

Sorrygandalangidn

Answer:

Firms will produce up until the point that marginal cost equals marginal revenue. This strategy is based on the fact that the total profit reaches its maximum point where marginal revenue equals marginal profit. ... If MR<MC, then the firm should produce less: it is making a loss on each additional product it sells.

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.