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If a Firm Is Maximizing Profits, the Extra Revenue It

question 449

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If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit.


Definitions:

Interest Rate

The segment of a loan that is applied as interest to the borrower, frequently described as an annual percentage of the unsettled loan.

Future Amount

The value of an investment or loan at a specified time in the future, calculated by applying interest rates or growth factors.

Rate of Return

Rate of Return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Investor

An individual or entity that commits capital with the expectation of receiving financial returns.

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