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
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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 |
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revenue = costs occurs at the breakeven point |
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diminishing marginal returns suggest a parabolic trade-off |
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If MR<MC then more output reduces profits |
||
If MR>MC more profit can be made by increasing output |
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