Final answer:
To maximize revenue, a business should choose a quantity where marginal revenue equals marginal cost.
Step-by-step explanation:
To maximize revenue, a business should choose a quantity where marginal revenue equals marginal cost. This means that the additional revenue gained from selling one more unit should be equal to the additional cost of producing that unit.
For example, if a pizza shop determines that at a quantity of 40, the marginal revenue is $16 and the marginal cost is also $16, then that would be the quantity that maximizes revenue.
Maximizing revenue is an important goal for businesses as it allows them to generate the highest possible profits.