Businesses are best positioned to maximize their profits when marginal costs, or the change in expenses brought on by manufacturing a new item, are equal to marginal revenues $4800.
50100 - 2100 = 5000 - 200 = 4800. An option agreement includes 100 shares. Four major elements can have an impact on profitability. Costs are going down, turnover is going up, production is going up, and efficiency is going up. You can grow into new market segments or develop entirely new goods or services. The profit maximization rule is represented in economics by the equation MC = MR, where MC stands for marginal costs and MR for marginal revenue. The profit maximization formula states that profit is calculated as Total Revenue minus Total Cost. A business optimizes profit when MR = MC, which is the first order, because the second order depends on the first order.
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