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 MRMC more profit can be made by increasing output
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 MRMC more profit can be made by increasing output
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 10MC
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Question
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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