ECN437MaximizingOutput

ECN437MaximizingOutput - profits not be negative. To...

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ECN437 Maximizing Output The goal of many public sector organizations is to serve as many clients as  possible without running a deficit. Rather than maximizing profits, in other  words, their objective is to maximize output subject to the constraint that 
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Unformatted text preview: profits not be negative. To accomplish that, the organization should choose the level of output, Q, at which average revenue is equal to average cost (AR=AC). That will generally be larger than the Q chosen by a profit-maximizing organization....
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