It is true because a firm that wants to maximize its revenue will reduce the price of its product where MR=0. It means that the firm will set this price will be less than the price at which MR=MC.
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Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits.
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Academic.Tips. (2022) 'Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits'. 22 November.
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Academic.Tips. (2022, November 22). Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits. https://academic.tips/question/indicate-whether-the-statement-is-true-or-false-and-explain-why-assuming-a-linear-demand-curve-a-firm-that-wants-to-maximize-its-revenue-will-charge-a-lower-price-than-a-firm-that-wants-to-maximize/
References
Academic.Tips. 2022. "Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits." November 22, 2022. https://academic.tips/question/indicate-whether-the-statement-is-true-or-false-and-explain-why-assuming-a-linear-demand-curve-a-firm-that-wants-to-maximize-its-revenue-will-charge-a-lower-price-than-a-firm-that-wants-to-maximize/.
1. Academic.Tips. "Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits." November 22, 2022. https://academic.tips/question/indicate-whether-the-statement-is-true-or-false-and-explain-why-assuming-a-linear-demand-curve-a-firm-that-wants-to-maximize-its-revenue-will-charge-a-lower-price-than-a-firm-that-wants-to-maximize/.
Bibliography
Academic.Tips. "Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits." November 22, 2022. https://academic.tips/question/indicate-whether-the-statement-is-true-or-false-and-explain-why-assuming-a-linear-demand-curve-a-firm-that-wants-to-maximize-its-revenue-will-charge-a-lower-price-than-a-firm-that-wants-to-maximize/.
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"Indicate whether the statement is true or false and explain why. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits." Academic.Tips, 22 Nov. 2022, academic.tips/question/indicate-whether-the-statement-is-true-or-false-and-explain-why-assuming-a-linear-demand-curve-a-firm-that-wants-to-maximize-its-revenue-will-charge-a-lower-price-than-a-firm-that-wants-to-maximize/.
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