Which of the following mathematical statements must be true if a firm is maximizing profit?

Choose 1 answer:
(A) $M R(Q)=A T C(Q)$
(B) $M R(Q)=M C(Q)$
(C) $M C(Q)=A T C(Q)$
(D) $P

Q: Which of the following mathematical statements must be true if a firm is maximizing profit? Choose 1 answer: (A) $M R(Q)=A T C(Q)$ (B) $M R(Q)=M C(Q)$ (C) $M C(Q)=A T C(Q)$ (D) $P<A V C(Q)$ (E) $P=A T C(Q)$

∻Solution∻ ‖ a ⋮ Profit Maximization Condition: In a competitive market, a firm maximizes profit where marginal revenue (MR) equals marginal cost (MC). This is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit. ‖ ∻Answer∻ ⚹ (B) $MR(Q) = MC(Q)$ ⚹ ∻Key Concept∻ ⚹ Profit Maximization in Competitive Markets ⚹ ∻Explanation∻ ⚹ A firm maximizes profit by producing the quantity of output where marginal revenue equals marginal cost, which is represented by option (B). ⚹◊What is the profit-maximizing condition for a firm in a perfectly competitive market according to microeconomic theory?⍭ Generate me a similar question◊

Question

Which of the following mathematical statements must be true if a firm is maximizing profit?

Choose 1 answer:
(A) $M R(Q)=A T C(Q)$
(B) $M R(Q)=M C(Q)$
(C) $M C(Q)=A T C(Q)$
(D) $P<A V C(Q)$
(E) $P=A T C(Q)$

Accepted Answer

∻Solution∻ ‖ a ⋮ Profit Maximization Condition: In a competitive market, a firm maximizes profit where marginal revenue (MR) equals marginal cost (MC). This is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit. ‖ ∻Answer∻ ⚹ (B) $MR(Q) = MC(Q)$ ⚹ ∻Key Concept∻ ⚹ Profit Maximization in Competitive Markets ⚹ ∻Explanation∻ ⚹ A firm maximizes profit by producing the quantity of output where marginal revenue equals marginal cost, which is represented by option (B). ⚹◊What is the profit-maximizing condition for a firm in a perfectly competitive market according to microeconomic theory?⍭ Generate me a similar question◊

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