a. The equality of MR and MC is essential for profit maximization in all market structures because if

1 answer:

ozzi2 years ago

3 0

The equality of MR and MC is essential for profit maximization in all market structures because if MR and MC are equal, any other output level will result in reduced profits.

<h3>What is profit maximization?</h3>

This is when a firm or an organization is able to make profit from its produced. Profit maximization is the traditional approach and the primary objective of financial management.

When profit is maximized there is a high revenue which can be used for business expansion. Profit maximization is the core goal of every business that can be cons. It implies that every decision relating to business is evaluated in the light of profit.

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