he algebraic expression MR=MC suggests thatGroup of answer choicesmarginal profit is decreasing.marginal profit is increasing.marginal profit is maximum.marginal profit is zero.
Question
he algebraic expression MR=MC suggests thatGroup of answer choicesmarginal profit is decreasing.marginal profit is increasing.marginal profit is maximum.marginal profit is zero.
Solution
The algebraic expression MR = MC suggests that the marginal profit is zero.
Here's why:
MR stands for Marginal Revenue, which is the additional income from selling one more unit of a good or service.
MC stands for Marginal Cost, which is the cost of producing one more unit of a good or service.
When MR equals MC, it means that the revenue gained from selling one more unit equals the cost of producing that additional unit. Therefore, there is no additional profit or loss, which means the marginal profit is zero.
Similar Questions
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