Asked by cristian segura on Sep 23, 2024
Verified
How many units should the profit maximizing firm produce?
A) 1
B) 2
C) 3
D) 4
Producing Units
Entities or machines engaged in the manufacture or assembly of goods, often within an industrial or manufacturing setting.
Profit Maximizing Firm
A company that focuses on actions that would increase its profits to the highest possible extent.
- Determine and compute strategies aimed at maximizing profit, specifically through analyzing the relationship between marginal cost and marginal revenue.
Verified Answer
TS
TANVEE SEHGAL5 days ago
Final Answer :
C
Explanation :
A profit-maximizing firm will produce the quantity of goods at which marginal cost equals marginal revenue. Without specific numbers for costs and revenues, we can't calculate the exact quantity. However, given the options, if we assume the question implies that producing 3 units balances marginal cost and revenue, then 3 would be the correct choice.
Learning Objectives
- Determine and compute strategies aimed at maximizing profit, specifically through analyzing the relationship between marginal cost and marginal revenue.