On a price vs. quantity curve, the optimal production is where P = Marginal Revenue = Marginal Cost.
Why? Doesn't the word "optimal" mean the "best?" Wouldn't the "best" be the point where the most profit is gained ie. highest possible marginal revenue and lowest possible marginal cost...
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.