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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.
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A producers profits are maximized when marginal costs are?
equal to marginal revenue
What happens when marginal revenue equals marginal cost?
profit is maximized
A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
True or false Profits will be maximized when total revenue equals total cost?
yes
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
A producers profits are maximized when marginal costs are?
equal to marginal revenue
A producers profits are maximized when marginal costs are .?
equal to marginal revenue
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.
What happens when marginal revenue equals marginal cost?
profit is maximized
A company is maximizing profit when marginal revenue?
A company maximizes profits when marginal revenue equals marginal costs.
True or false Will profits be maximized when total revenue equals total cost?
yes
True or false Profits will be maximized when total revenue equals total cost?
yes
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
In the long-run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to?
marginal revenue
When will be marginal revenue maximized?
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.
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
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
