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faust18 [17]
10 months ago
7

TRUE/FALSE. the profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a

loss over the long run.
Chemistry
1 answer:
SCORPION-xisa [38]10 months ago
5 0

The statement was false as it mentioned, the profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run

What is profit-maximizing rule ?

According to the Profit Maximization Rule, if a corporation want to maximise its profits, it must select the level of output where Marginal Cost (MC) equals Marginal Revenue (MR) and the Marginal Cost curve is increasing. To put it another way, it must generate at a level where MC = MR.

The profit maximization rule formula is as follows:

MC = MR

The marginal cost is the cost increase caused by manufacturing one extra unit of an item.

The difference in total revenue as a result of altering the rate of sales by one unit is referred to as marginal revenue. The slope of Total Revenue is also known as Marginal Revenue.

Total Revenue - Total Costs = Profit

Profit maximisation happens when there is a considerable gap or disparity between total revenue and total cost.

so the given statement the profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run. was a false statement.

To learn more about profit-maximizing rule  follow the given link: brainly.com/question/7586794

#SPJ4

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