The sales maximization model assumes that imperfectly competitive firms will produce a level of output where
A) marginal revenue is equal to zero.
B) marginal revenue is equal to marginal cost.
C) marginal revenue is equal to zero if profit is satisfactory.
D) they will break even.

Question

Quizplus · Accepted Answer

The sales maximization model suggests that firms aim to maximize sales rather than profits, producing where marginal revenue is zero if profit is satisfactory.

The Sales Maximization Model Assumes That Imperfectly Competitive Firms Will