How does a manufacturer set his or her total output to maximize profit?

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04-03-2019
Business

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How does a manufacturer set his or her total output to maximize profit?

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MrCreighton MrCreighton · Answer 1 · 2019-03-04T21:22:42+01:00

MrCreighton MrCreighton

04-03-2019

A manufacturer would need to find the production quantity where the marginal rate of return equals marginal costs (this is called the equilibrium point). This would be the point where profits are maximized.

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