When a firm is producing at the level of output that maximizes profit, which of the following is true?(1 point)
Responses
Marginal revenue is equal to marginal cost.
Marginal revenue is equal to marginal cost.
Marginal revenue is greater than marginal cost.
Marginal revenue is greater than marginal cost.
Marginal revenue is positive.
Marginal revenue is positive.
Marginal cost is negative.
1 answer
When a firm is producing at the level of output that maximizes profit, the following is true:
Marginal revenue is equal to marginal cost.
This condition ensures that the firm is maximizing its profit, as producing additional units would lead to marginal cost exceeding marginal revenue, resulting in lower profits.
