If a firm equates MR and MC, then:

Question

Quizplus · Accepted Answer

When a firm equates MR and MC, it means that it is producing the optimal level of output where its profits are at a maximum or losses are at a minimum. This is because MR represents the additional revenue earned from selling one more unit, while MC represents the additional cost incurred from producing one more unit. At the point where MR=MC, the firm is producing the optimal level of output where it is earning the most profit or losing the least amount.

If a Firm Equates MR and MC, Then