Create a firm model that shows how economists explains the firm level of production that maximizes its profit. Do not use number

Question

3 years ago

10

Create a firm model that shows how economists explains the firm level of production that maximizes its profit. Do not use number

s. Just graphs and detailed explanation. Make sure to explain the concavity of the production function and what does it mean.

Business

1 answer:

densk [106] · Answer 1 · 2022-06-12T21:37:48+03:00

Answer:

MC ( marginal cost ) = MR ( marginal revenue )

Explanation:

A Firm's level of production that maximizes the profit of the firm is the level where by the MC = MR. i.e. Marginal Cost = Marginal Revenue as shown in the graph attached . shade part depict region where Firm will make the most profit

Attached below is th graphical illustration as required by the question