Asked by
Brahim Bijdir
on Dec 11, 2024Verified
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.
Verified Answer
MS
Learning Objectives
- Clarify how a firm's decisions on production, aimed at profit maximization, are influenced by marginal cost and marginal revenue.