In the short-run, the quantity that will maximize profits will be the quantity at which

a. the unit after this one will be have MC MR.
b. marginal cost = marginal revenue
c. MR = MC
d. all of the above
e. only b and c above

Question

In the short-run, the quantity that will maximize profits will be the quantity at which

a. the unit after this one will be have MC > MR.
b. marginal cost = marginal revenue
c. MR = MC
d. all of the above
e. only b and c above

justus · Answer

Double checking, I think it's B.

justjm · Answer

Yes, you are right on option B. But option c is also correct. It's the same thing; MR is an abbreviation for marginal revenue and MC is an abbreviation for marginal cost. This makes E the answer

justus · Answer

Thank you <3

justus · Answer

I got it wrong but it's okay <3

justjm · Answer

I am piqued; not sure why B and C would be wrong. The Profit-maximization rule says that when MR=MC, it would be the quantity at which profits are maximized. All market structures follow this, whether it's a monopoly or a PC, though their pricing rules are different.

Looking at it now, this would only probably mean that option A was a correct option as well. It seemed a bit unintelligible when reading it at first, but I think it's talking about the quantity after the price-maximization point. Considering the MC and MR Curve:

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By that, A would be correct to, hence making it D. Sorry I didn't catch this one <3

justus · Answer

I see, it's okay don't be sorry