Profit maximization occurs when: a firm expands output until marginal revenue is exceeded by marginal cost. a firm expands output until marginal revenue is equal to marginal cost. the price in the market is equal to the firm’s marginal revenue. total costs equal total revenue. a firm sets the price at a point above average total cost.

The correct answer is a firm expands output until marginal revenue is equal to marginal cost.

Explanation:

Profit maximization is one of the pillars of economic theory, explaining how companies seek to achieve a high level of profit to maximize their wealth and benefits, just as individuals do with their level of utility.

This concept is especially important in the microeconomic study, as it is a pillar of multiple economic models. This happens because maximizing the wealth or welfare level is a basic principle that companies follow when facing a certain economic activity. Profit maximization is the economic objective of companies, in order to increase the value of the company. This increase in the value of the company is what the shareholders and investors are looking for, which expect their investment in the company to be profitable.

answer; proclamation of 1763;

answer///supply is elastic, and demand is inelastic;