Why don’t producers choose to produce at the point that maximises revenue?
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marginal cost, marginal revenue, opportunity cost and decision-making, wage determination, price takers vs. price makers
Economists often discuss decisions being made at the margin, and you will have experienced discussions of marginal revenue (or marginal benefits) and marginal costs as being used to make decisions. Firms are often thought of as choosing to produce at the point where marginal revenue is equal to marginal cost. Wages are often thought of as being determined by the marginal product of labour. Consumption decisions are made based on the marginal cost weighed against the marginal benefit.
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