A firm wishing to maximize profits will produce at the level of output where
A) economic profit is zero.
B) its total cost curve intersects its total revenue curve.
C) costs are at a minimum.
D) total revenue exceeds total cost by the largest amount.
E) marginal revenue exceeds marginal cost by the greatest amount.

Question

Quizplus · Accepted Answer

A firm maximizes profits where the difference between total revenue and total cost is the greatest, which is when total revenue exceeds total cost by the largest amount.

A Firm Wishing to Maximize Profits Will Produce at the Level