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NoxicRox t1_iubjv4k wrote

Through an investors standpoint, the business is actually operating at its efficiency point when marginal profit is equal to $0.

When marginal profit is equal to $0, marginal revenue equals marginal costs, which would indicate the production point where profits would be maximized.

As an investor, you don’t want to see money that’s stagnant, you want the firms you invested into to maximize profits at any given point in time.

What you said completely goes against microeconomic principles. With that said, I’m convinced you have no idea what you’re talking about lol

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Maneatsdog t1_iudtogd wrote

Today I learned that marginal profit is not what i thought it was! Thanks for your explanation

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