Question

businesses do not maximize output from given input​

Answer 1

Answer:

The profit-maximizing choice for a perfectly competitive firm will occur at the level of output where marginal revenue is equal to marginal cost—that is, where MR = MC.

Explanation:

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Answer 2

One term for business do not maximize output from given input is Diminishing returns.

• When a company or business do not maximize output from the given impulse dis-economies of scale takes place.
• Business do not maximize output from the given inputs.
• If there is an additional increase in inputs then is results in slight decrease in output.
• MR = MC i.e marginal revenue is equal to marginal cost is the term which is used for profit maximizing of perfectly competitive firm.