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Answer to Question #39845 in Macroeconomics for Sarah
Question #39845
Having completed this course as part of your MBA program you have been hired by a
medium sized company. You attend a meeting where the CEO explains that the goal of the company is to maximize profits, not total revenue. As such the firm must estimate both costs and revenues to determine the output where the difference between marginal revenue and marginal cost is the greatest. Will this output level maximize the firm’s profits? Explain why or why not
medium sized company. You attend a meeting where the CEO explains that the goal of the company is to maximize profits, not total revenue. As such the firm must estimate both costs and revenues to determine the output where the difference between marginal revenue and marginal cost is the greatest. Will this output level maximize the firm’s profits? Explain why or why not
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