A sale maximizing firm will produce where ?
Correct answer: D. sales revenue is maximized
- A. AR minus AC is maximized
- B. MC = MR
- C. quantity sold is maximized
- D. sales revenue is maximized
Explanation
A sales-revenue-maximising firm chooses the output at which total sales revenue is greatest, rather than where profit is greatest. Profit maximisation uses the condition MC = MR, so option b describes a different objective.
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