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.
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.
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
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.
profit is maximized
Profit is maximized on a graph where the marginal cost curve intersects the marginal revenue curve.
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.
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
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.
The profit maximizing point on the graph for this business model is where the marginal revenue equals the marginal cost.
The TR-TC approach to profit maximization involves analyzing total revenue (TR) and total cost (TC) to determine the most profitable level of output. Profit is maximized when the difference between total revenue and total cost is the largest, which occurs where marginal revenue equals marginal cost (MR = MC). This approach helps firms identify the optimal production level that maximizes profitability by balancing revenue generation with cost management.
To determine the profit-maximizing output from a table, look for the quantity where the marginal revenue equals the marginal cost. This is the point where the firm maximizes its profit.
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
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.
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.