Answer:
A. Marginal revenue does not have to equal marginal cost
Explanation:
The profit maximizing point is precisely at the point at which marginal revenue equals marginal cost.
Marginal Cost: cost for an additional unit of output
Marginal Revenue: revenue for an additional unit, It is the slope of the revenue fuction.
For example a business will check the revenue generate per hour.
It will remain open until this amount equal the cost of being open that hour.
Staying longer will generate a loss from that particular hours thus, reducing profit.
