In the statement of cash flows, inflows and outflows of cash from buying and selling trading securities typically are considered
1 answer:
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Answer:
- marginal revenue equals marginal cost.
- expand; increase profitability
Explanation:
A monopoly would seek to maximize its profit at a point where marginal revenue will equal marginal cost because at this point, resources are being fully and efficiently utilized. If more cost was incurred to produce then marginal cost would exceed marginal revenue and lead to losses.
The same goes for the firm producing at a quantity where marginal revenue is larger than marginal cost. They should expand their production levels so that their marginal cost equals marginal revenue as this will increase profitability.
