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marginal cost of production
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∙ 11y ago
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Why do the demand and marginal revenue curves coincide?
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
What happens when marginal revenue equals marginal cost?
profit is maximized
How can marginal revenew and marginal costs help set the most profitable putput level?
The most profitable output level is when marginal costs equals marginal revenue. When marginal revenue is larger than marginal cost, that means that more product can be produced for more profit.
What is the level of output every firm strives for?
The level of output every first strives for is when marginal revenue equals marginal cost.
Why do the demand and marginal revenue curves coincide?
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
What happens when marginal revenue equals marginal cost?
profit is maximized
Why are profit maximize when marginal revenue is equal to marginal cost?
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.
How can marginal revenew and marginal costs help set the most profitable putput level?
The most profitable output level is when marginal costs equals marginal revenue. When marginal revenue is larger than marginal cost, that means that more product can be produced for more profit.
What is the level of output every firm strives for?
The level of output every first strives for is when marginal revenue equals marginal cost.
Marginal cost equals marginal revenue?
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
When a firm makes a profit by producing enough goods to meet demand without having leftover supply at what point is it?
When a firm makes a profit by producing enough goods to meet demand without having leftover supply the point of profit is where marginal revenue equals marginal cost.
Firms will employ an input up to the point where?
The input's price equals its marginal revenue product
When marginal revenue equals marginal cost?
At this intersection point on a graph, firms will earn maximum profit, even if this point is under average total cost.
When a firm makes a profit by producing enough goods to meet demand without having leftover supply at what point is this?
The point where marginal revenue equals marginal cost
A firm will maximize profits by employing the quantity of each input where the marginal does what?
revenue equals the price of each input
