ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes, I understand this from the notes
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No, I don’t understand this from the notes
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No, I don’t understand this, as I have not read the notes
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None of the above
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Detailed explanation-1: -If marginal revenue is higher than marginal cost, your company should raise production levels to improve efficiency and generate more profit overall. If marginal cost is higher than marginal revenue, your business should lower production levels to reduce profit loss.
Detailed explanation-2: -1. If marginal revenue is greater than marginal cost, the monopolist should increase output. 2. If marginal revenue is less than marginal cost, the monopolist should decrease output.
Detailed explanation-3: -The profit maximized where marginal revenue is equal to marginal cost because when MR is more than MC, the firms produce more as they can earn more profit, and when MR is less than MC, the firms produce less as they can incur losses. Thus, profit maximization level is where both these are equal.
Detailed explanation-4: -Answer and Explanation: If marginal revenue is greater than marginal cost, a producer must reduce the level of output to maximize profit.