Respuesta :
When the company hires the mix of resources that will increase profits by 5 and 8 respectively, its economic profit will be 145.
What is meant by profit maximization?
In order to increase their returns, firms must ensure that the best levels both output and prices were realized through the process of profit maximizing. For the purpose of achieving its profit goals, the corporation alters crucial factors such as sale price, cost of production, or output levels. When marginal revenue equals marginal cost, or when MR = MC, a fully competitive firm will make the decision that will maximize its profits.
Why is profit maximizing important and what are the three conditions of profit maximization?
Profit maximization is indeed a tactic that can encourage efficient and long-term company growth. If you're prepared to expand your business, a maximizing profit strategy will ensure that more work yields better net revenue.
Cost price p must match market value (MC). At q0, the marginal cost must not be decreasing. In order for the business to continue producing goods, the cost price must be higher than the average variable cost (p > AVC) in the short term and higher than the average cost (p > AC) in the long term.
To know more about Profit Maximization visit:
https://brainly.com/question/17233964
#SPJ4
