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
Profit is maximized on a graph where the marginal cost curve intersects the marginal revenue curve.
A company maximizes profits when marginal revenue equals marginal costs.
Profit is maximized when marginal revenue equals marginal cost because at that point, the additional revenue gained from selling one more unit is equal to the additional cost of producing that unit. This balance ensures that the company is making the most profit possible, as any further increase in production would result in higher costs than revenue gained.
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
Profit is maximized on a graph where the marginal cost curve intersects the marginal revenue curve.
A company maximizes profits when marginal revenue equals marginal costs.
Profit is maximized when marginal revenue equals marginal cost because at that point, the additional revenue gained from selling one more unit is equal to the additional cost of producing that unit. This balance ensures that the company is making the most profit possible, as any further increase in production would result in higher costs than revenue gained.
If a firm's marginal revenue is greater than its marginal cost, it should increase production to maximize profits.
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
yes
yes
marginal revenue