firm will maximize profit by producing that level of output at which
A)the additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount.
B)the additional revenue from the last unit sold equals the additional cost of the last unit.
C)total revenue exceeds total cost by the largest amount.
D)total revenue equals total cost.
E)both b and c

Question

Quizplus · Accepted Answer

A firm will maximize profit where marginal revenue (the additional revenue from the last unit sold) equals marginal cost (the additional cost of the last unit). This is also the point where total revenue exceeds total cost by the largest amount, making both B and C correct.

Firm Will Maximize Profit by Producing That Level of Output