Answer :
Standard profit-maximizing idea leaves room for cases where it is both possible and real looking for a company to function at a loss over the long run. This statement is false.
What is the widespread income maximization position of a firm?
All firms maximize earnings when their marginal price is equal to the marginal product. This dollar amount should also be the selling price that maximizes profits.
The profit-maximizing rule is to produce the extent the place marginal fee equals marginal revenue. For a flawlessly aggressive firm, its marginal income equals the market price.
In long-run equilibrium, a aggressive association produces at the point of the minimum average whole cost. In perfect competition, companies will set the fee at the minimal common whole cost.
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