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
profit is maximized
A company maximizes profits when marginal revenue equals marginal costs.
yes
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
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.
profit is maximized
A company maximizes profits when marginal revenue equals marginal costs.
yes
yes
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
marginal revenue
marginal revenue
At the beggining of the MR curve, the first instance of output, from then on, MR falls until it hits 0 at the point where total revenue is max.
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B