A profit-maximizing firm always
A)sells its output at P = MC.
B)produces at the output at which MR is maximized.
C)hires labor until the MRP of labor
D)finds the output where marginal profit is zero.

Question

Quizplus · Accepted Answer

A profit-maximizing firm finds the output where marginal profit is zero, meaning that marginal cost equals marginal revenue (MC = MR). This is the point where any additional unit of output would not increase profit.

A Profit-Maximizing Firm Always