Copyright

How do you determine the optimal production level for your product? Explain.

Question:

How do you determine the optimal production level for your product? Explain.

Optimal Production Level

Marginal revenue equals the changes in total revenue in response to 1 unit increase in output, Marginal cost equals the changes in total cost in response to 1 unit increase in out pout.

Answer and Explanation:

The optimal level of production is where the marginal revenue (MR) equals the marginal cost (MC). This is because as long as MR>MC, the gain from...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

Loading...
Market Equilibrium in Economics: Definition & Examples

from Introduction to Macroeconomics: Help and Review

Chapter 3 / Lesson 10
334K

Related to this Question

Explore our homework questions and answers library