To maximize profits, a firm should continue to increase production of a good until marginal revenue is equal to marginal cost.
According to the cost-benefit analysis, a company should continue to increase production until marginal revenue is equal to marginal cost. A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost)
What Is Marginal Revenue?
Marginal revenue is the increase in revenue that results from the sale of one additional unit of output.
What Is Marginal Cost?
In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit.
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Answer: Macro
Explanation:
This is a macro distinction as the producers of soybean in America are concerned about the crop grown in South America as it will affect the overall price level of soybean in America. When the weather in South America is favorable and the crop produce is large, the supply curve for soybean will shift to the left driving down the overall price level of soybean in America.
Thus, because the concern here is about the overall produce and overall price level it is a macro distinction.
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Demand refers to the number of products or services that consumers will purchase at varying costs at a given time.
<h3>What is a Product?</h3>
A product is referred to as final or finished goods distributed in the market to serve the customers. This product can be both goods and services in which goods are tangible and services are intangible.
Demand is the number of goods or services that customers will buy at various price points at a particular time period. Demand for anything or service indicates that people prefer it and are capable of paying for it based on their needs and desires.
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In order to support other promotional methods, firms would try to generate free media attention using Public Relations.
<h3>What is the use of public relations?</h3><h3 />
Public relations is used by companies to talk about recent developments such as new products.
This therefore generates free media attention that can then be augmented by, or augment other promotional efforts such as television ads.
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