The profit-maximizing choice for a perfectly competitive firm will occur at the level of output where marginal revenue is equal to marginal cost—that is, where MR = MC. This occurs at Q = 80 in the figure.
Marginal revenue is the increase in revenue that results from the sale of one additional unit of output.
While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.
<h3>How do u calculate marginal revenue?</h3>
To calculate marginal revenue, you take the total change in revenue and then divide that by the change in the number of units sold.
The marginal revenue formula is: marginal revenue = change in total revenue/change in output.
The answer is option A) The false statement among the options provided is:
A preemptive right is never particularly valuable to shareholders with large ownership percentages.
A pre-emptive right enables investors to maintain a proportional level of ownership.
The goal of every investor is to make profit but this goal could be affected if the value of shares they hold is diluted. Hence the need for preemptive rights.
Preemptive right is a protective strategy by shareholders to maintain their share value with the option to buy a proportionate amount of shares if the company wishes to issue additional shares in the future.
Therefore, it is false to say that:
"A preemptive right is never particularly valuable to shareholders with large ownership percentages".