Which of the following statements is correct? A. The manager's objectives are to increase profits every year and to show positive profits by the end of the year. B. The manager must always make sure that employees maxmize their benefits. C. The manager must always assure to minimize costs. D. The most important objective of the manager is to maximize profits at the level where MB - MC = 0.
Which of the following statements is correct?
A. The manager's objectives are to increase profits every year and to show positive profits by the end of the year.
B. The manager must always make sure that employees maxmize their benefits.
C. The manager must always assure to minimize costs.
D. The most important objective of the manager is to maximize profits at the level where MB - MC = 0.
Marginal cost is the additional cost incurred by a producer when he produces an additional unit of output. Total cost is computed by the summation of marginal cost.
Marginal benefit is an additional benefit earned by a producer from selling an additional unit of output in the market. Total revenue is computed by the summation of marginal revenue.
The difference between the total revenue and total cost is called profit.
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