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Business, 03.12.2019 18:31 simonthang8
Astudent argues: "to maximize profit, a firm should produce the quantity where the difference between marginal revenue and marginal cost is the greatest. if a firm produces more than this quantity, then the profit made on each additional unit will be falling."
is the above statement true or false?
a. true. as per-unit profit falls, total profit falls.
b. false. profit is maximized at the output level where marginal revenue equals marginal cost.
c. false. per-unit profit increases and is maximized where marginal revenue equals marginal cost.
d. true. this is where marginal profit equals marginal cost and profit is maximized.
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