Total profit will be maximized where total revenue is maximized.

Name: Total profit will be maximized where total revenue is maximized.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Total profit is maximized where the difference between total revenue and total costs is the greatest, not necessarily where total revenue is maximized. Profit maximization occurs at the output level where marginal cost equals marginal revenue, which may not coincide with maximum total revenue.

Total Profit Will Be Maximized Where Total Revenue Is Maximized