Explore BrainMass
Share

Explore BrainMass

    marginal revenue

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The economics student knows that the profit maximizing manager will produce the quantity where marginal revenue equals marginal cost (a J-shaped curve which reflects a different marginal cost at every quantity). The manager knows that organizations estimate marginal costs that are constant over a range of quantity levels. How can the manager approximate the marginal revenue equals marginal cost rule to maximize profit?

    © BrainMass Inc. brainmass.com October 9, 2019, 10:26 pm ad1c9bdddf
    https://brainmass.com/economics/price-levels/marginal-revenue-costs-220449

    Solution Summary

    Advice on how to approximate the marginal revenue equals marginal cost rule to maximize profit is embedded.

    $2.19