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Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
equal to marginal revenue
equal to marginal revenue
Profits are maximized when marginal costs equals marginal revenue because fixed costs are now spread over a larger amount of revenue. This means that total cost per unit declines and profits increase. Another way to say this is that this is the effect of scale. When marginal revenue equals marginal costs, in a growing revenue situation, you gain economies of scale and higher profits.
A company maximizes profits when marginal revenue equals marginal costs.
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
The marginal principle will tell us that a firm will maximize it's profits by choosing a quantity at which, price=marginal costs.
Is it A) Costs B) Taxes C) Profits D) Marginal Revenue
If marginal costs are relevant for specific situation or specific decision making scenario then marginal costs are relevant costs otherwise marginal costs can be irrelevant.
what about them? profits are 0 price=marginal cost all costs are variable optimal allocation of inputs is where marginal rate of technical substitution is equal to the price ratio of the inputs.
One is able to learn about marginal costs at several different places online, such as at the following websites: the Wikipedia Marginal Costs webpage, Marginal Cost, and Margins.
Rational Decision making occurs when marginal benefits of an action exceed the marginal costs