Profit maximization can be inferred from MR=MC since:please choose all the answers that are correct a marginal change in either direction will reduce profits, assuming diminishing marginal returns revenue = costs occurs at the breakeven point diminishing marginal returns suggest a parabolic trade-off If MR<MC then more output reduces profits If MR>MC more profit can be made by increasing output

Profit is maximized at MR = MC because When Marginal Cost < Marginal Revenue, then for each…

Answered: Profit maximization can be inferred…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Profit maximization can be inferred from MR=MC since:

please choose all the answers that are correct

		a marginal change in either direction will reduce profits, assuming diminishing marginal returns
		revenue = costs occurs at the breakeven point
		diminishing marginal returns suggest a parabolic trade-off
		If MR<MC then more output reduces profits
		If MR>MC more profit can be made by increasing output

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