MICRO HW! True or False?

The profit maximization rule says to produce at a rate of output where marginal revenue equals marginal cost.

True or False

Why?

Comments

  • True. If MR>MC, it is more profitable to increase output so that MC will increase.If MR<MC, it is in a loss.It has to decrease output,so that MC will decline.

  • pretend. considering no matter if the tax is imposed upon the shoppers or upon the sellers,the tax places a wedge between the price paid by the shoppers and the price retained by the sellers. considering after imposition of the tax,the price to shoppers rises and the price to sellers reduces.and the amt. of the quantity traded shrinks.

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