Question

Until what a firm should continue to increase its production in order to maximize
a) Total revenue equals total cost
b) Profits are zero
c) Marginal revenue equals marginal cost
d) Average cost equals average revenue​

Answer 1

Answer:

Explanation:

The marginal cost of production and marginal revenue are economic measures used to determine the amount of output and the price per unit of a product that will maximize profits. A rational company always seeks to maximize its profit, and the relationship between marginal revenue and the marginal cost of production helps to find the point at which this occurs. The point at which marginal revenue equals marginal cost maximizes a company's profit.