(Answered) BA Exit Evaluationonomics: Microeconomics – Price, Cost, and ProfitMarginal cost is ◻A the change…

➤ Why does marginal cost matter for profit maximization?
Marginal cost matters because profit-maximizing firms produce where marginal revenue equals marginal cost (MR = MC). In perfect competition MR equals market price, so firms set output where price = MC. Producing beyond that point lowers profit. The MR = MC rule links cost structure to pricing and supply decisions.