Asked by

Brahim Bijdir
on Dec 11, 2024

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A profit-maximizing entrepreneur will produce and sell an additional unit of output as long as

A) it lowers the firm's unit costs.
B) it lowers the firm's marginal cost.
C) it adds more to revenue than it adds to cost.
D) there is additional plant capacity to produce.

Profit-Maximizing

The process by which a company determines the price and output level that generates the maximum profit.

Marginal Cost

The increased cost resulting from the production of one more unit of a product or service.

Revenue

The total income received by a business or organization from its normal business operations.

  • Clarify how a firm's decisions on production, aimed at profit maximization, are influenced by marginal cost and marginal revenue.
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Midnight Shadow7Dec 15, 2024
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