Question

Given the relation MR=P (1-1/e), if e<1, then
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Answer 1

Explanation:

maximization occurs at the point where marginal revenue (mr) equals marginal cost (mc). if {\displaystyle mr>mc} {\displaystyle mr>mc} then a profit-maximizing firm will increase output to generate more profit, while if {\displaystyle mr<mc} {\displaystyle mr<mc} then the firm will decrease output to gain additional profit. thus the firm will choose the profit-maximizing level of output for which {\displaystyle mr=mc