Asked by
Marina Misitano
on Dec 12, 2024
Verified
Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?
A) The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale.
B) The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale.
C) The total cost of producing all units is no greater than the total revenue derived from the sale of the units.
D) The total cost of producing all units is less than the total revenue derived from the sale of the units.
Marginal Revenue
The increase in revenue that results from the sale of one additional unit of product.
Profit-maximizing Output
The level of production at which a company achieves the highest possible profit.
- Explicate the role that marginal revenue and marginal cost play in the maximization of earnings for price-setting enterprises.
Verified Answer
CV
Learning Objectives
- Explicate the role that marginal revenue and marginal cost play in the maximization of earnings for price-setting enterprises.