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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		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