0 vote
Which is the first-order condition for the profit of a firm to be maximum?
Asked on by Guest | Votes 0 | Views: 89 | Tags: general knowledge | commerce | economics | Add Bounty
Which is the first-order condition for the profit of a firm to be maximum?
A). AC=MR
B). MC=MR
C). MR=AR
D). AC=AR
1 answers
0 vote
MC=MR
MC=MR is the first-order condition for the profit of a firm to be maximum. The Profit Maximization Rule states that if a firm chooses to maximize its profits, it must choose that level of output where Marginal Cost (MC) is equal to Marginal Revenue (MR) and the Marginal Cost curve is rising. In other words, it must produce at a level where MC = MR.
Other Questions
1. When equilibrium price rises but equilibrium quantity remains unchanged, the cause is
4. Question 4:Describe the Great Depression of 1929.
5. 'Repo rate' is the rate at which :
6. Money transfer through mobile is called __________.