Profit Maximization
Students will apply the marginal revenue equals marginal cost rule to determine the profit-maximizing output level for a firm.
Key Questions
- Explain why a firm should produce where marginal revenue equals marginal cost.
- Analyze how changes in market price affect a firm's profit-maximizing output.
- Construct a graph illustrating a firm's profit-maximizing output and profit/loss area.
Ontario Curriculum Expectations
Suggested Methodologies
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