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How do you find the level of output a firm should operate at to maximize revenue? (For a firm in perfect competition)

2006-11-16 09:43:54 · 1 answers · asked by Shane W 1 in Social Science Economics

1 answers

A firm would maximise revenue at the level of output at which marginal revenue equals zero.

But in perfect competition, the firm would aim to maximise profit, not revenue. It would produce the level of output at which marginal cost equals price.

2006-11-16 12:09:46 · answer #1 · answered by Marakey 3 · 0 0

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