a competitive firm will maximize profits at that output at which:,

In a competitive market, the firm that is able to produce at an optimal level will be the most profitable. There are 3 key factors that affect how much of a profit can be gained in this type of environment: total cost, marginal revenue and marginal cost. In order to maximize profits, firms must have a good understanding of these three concepts.- ” gained be can profit a of much how affect that factors key three areThere ” after right go should sentenceThis . profit maximize to order in factors three these on based level output profitable most their analyze must firms, Therefore). levels optimalabove ( increased was production if sold be could what than less sell or) levels optimal below producingif ( inputs more purchase to have either would they since profits its maximize not may it, level a of low too or high too at produces firm a If. unit extra this selling from generated be will money much how represents revenue marginal while, produced is output of unit extra an when cost total in increase the reflects cost marginal The. costs fixed and variable all of sum the is cost totalThe other ignoring likeakesmist– not or profitable’re they whether affect can which costs marginal and revenue marginal considering when businesses by made mistakes common some out points also It. profits their maximize to want they if concepts three these understand to firms for is it important how illustratesization maxim profit about post followingThe ExampleAn .” unnecessarily resources waste or losses incur not as so above mentioned factor each for levels optimal finding through achieved isization maxim Profit. output of unit more one producing from result would that cost total in increase the: costinal Marg. production of unit additional an from result would that revenue total in change the: revenueinal Marg. expenses variable and fixed including, product a produce to required costs all of total the: costTotal exceed revenues marginal When. costs opportunity considering produced be should much how as well as profits affect will sold item additional each profitable how determine will amount this because important is concept This%. 100 by increase marginal a been has there means which incomes on increase% 50 a represent would this, income of worth100 $ in brings sale extra an if, example For). goodor ( unit more one selling from profit in increase the is revenueinal Marg? profitability affect revenue marginal doesHow . cost total for calculations your in it include must you then item the making of part’s it if but, not may some and variable be can these of Some. service or product a make to necessary are that costs the all includes cost Total? cost total isWhat