Profit- maximizing firms increase production up to the point at which the last unit of the variable factor employed adds
A)nothing to marginal cost.
B)just as much to revenue as to profit.
C)positive economic profits.
D)nothing to marginal revenue.
E)just as much to revenue as to cost.

Question

Quizplus · Accepted Answer

Profit-maximizing firms increase production until the marginal cost of the last unit produced equals the marginal revenue it generates, meaning it adds just as much to revenue as to cost.

Profit- Maximizing Firms Increase Production Up to the Point at Which