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Basic Question 13 of 13
The profit maximization decision is producing the level of output such that ______
II. MC is not falling.
III. MR = MC
IV. TR = TC
I. MR is not rising.
II. MC is not falling.
III. MR = MC
IV. TR = TC
User Contributed Comments 5
| User | Comment |
|---|---|
| maryprz14 | Can someone explain this please? |
| babycdq | Why I is wrong? |
| choas69 | WHY 2 is right? |
| Samir3112 | MC assumes an U shaped curve in the short run, so for low levels of cost , the MR curve might intersect MC curve at two different points. W e need to choose only that point(quantity of output) where MC is increasing. |
| MathLoser | Guys, watch this awesome video. He explained: OMG I can't paste the link here. Search Maximizing Profit Practice - Micro Topic 3.5 Jacob Clifford on youtube. And that guys explained many things about micro and macro topics. I found it worth reading like diminishing return, short run, long run, etc |
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Craig Baugh
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.