Question

Managers prefer the marginal approach when analyzing cost and investigating where their profit maximizing level of output is because managers would prefer to look at profit and cost per unit to maximize how much they can get out of each unit sold true or false ?

Answer 1

the given statement is true and this is because of the fact that ultimately a company's goal is to generate more amount of profit but not more amount of revenue and in this regard marginal analysis which tells us that marginal revenue is equal to the marginal cost is the profit-maximizing level of output where at this level of output you might not get the maximum amount of price for product but you will get the maximum profit and that is the reason why managers prefer to use this and regulate the supply conditions.

Therefore 'True' is the answer to this question