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1 mark

To maximize profit, what condition must be met regarding Marginal Cost (MC) and Marginal Revenue (MR)?

  1. A
    MC < MR
  2. B
    MC = MR
  3. C
    MC > MR
  4. D
    None of the above

Solution & Step-by-step Explanation

Profit is maximized at the output level where the additional revenue from selling one more unit (MR) equals the additional cost of producing that unit (MC).Mathematically, . To maximize, .

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To maximize profit, what condition must be met regarding Marginal Cost (MC) and Marginal Revenue (MR)?
A
MC < MR
B
MC = MR
C
MC > MR
D
None of the above

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