From an economic perspective,a company's profit-maximizing quantity is found where:
A)the total cost curve intersects with the marginal cost curve.
B)the total revenue curve intersects with the average revenue curve.
C)the marginal revenue curve intersects with the demand curve.
D)the marginal revenue curve intersects with the marginal cost curve.
E)the marginal cost curve intersects with the demand curvE.

Question

Quizplus · Accepted Answer

The profit-maximizing quantity is found where marginal revenue (MR) equals marginal cost (MC), as this is where the additional revenue gained from producing one more unit is equal to the additional cost incurred in producing that unit. Therefore, the optimal level of output occurs where the point where the marginal revenue curve intersects with the marginal cost curve.

From an Economic Perspective,a Company's Profit-Maximizing Quantity Is Found Where