Economy, asked by sambhav3540, 1 year ago

Second order condition for ideal market why increasing marginal cost

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Answered by HimanshuPandeya
0

The profits of a firm will be maximum at that level of output whose marginal cost is equal to marginal revenue. Thus, every firm will increase output till marginal revenue is greater than marginal cost. On the other hand, if marginal cost happens to be greater than marginal revenue the firm will sustain losses.

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