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Alchen [17]
2 years ago
13

Explain why to maximize profits a firm needs to produce an output at a level where marginal revenue

Business
1 answer:
Orlov [11]2 years ago
8 0

Answer:

Rest of question:

... equals marginal cost.

Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.

As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.

This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.

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The learning curve is:_______
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Answer:

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Explanation:

Option C is the correct answer because the learning curve shows the relationship between the cost of the production and output over the time period. Moreover, this curve shows the cost savings when more output is produced over time. The same can be seen in option C that the cost decreases when output rises which means there is a cost-saving.

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Using an advertising agency is a cost-effective way for a small business to advertise its products or services.
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What is the main advantage of having a skill set with a high market value?
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2 years ago
MC Qu. 152 Adams Manufacturing allocates... Adams Manufacturing allocates overhead to production on the basis of direct labor co
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Answer:

$1.60 per direct labor hour

Explanation:

Overhead application rate = Budgeted Overheads ÷ Budgeted Activity

hence,

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6 0
3 years ago
Pina Colada Corp. holds Tamarisk, Inc. $44400, 120-day, 15% note. The entry made by Pina Colada Corp. when the note is collected
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Answer and Explanation:

The journal entry is shown below

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     To Notes Receivable $44,400

     To Interest receivable ($44,400 × 15% × 120 days ÷  360 days)

(Being the cash received is recorded)

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The same is to be considered

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