Total profit will be maximized where:

Question

Quizplus · Accepted Answer

Total profit is maximized where total revenue minus total cost is at its greatest positive level, which means that the revenue generated should exceed the cost incurred. Therefore, option A is the correct answer. Option B is incorrect as lowest positive level of total revenue minus total cost would lead to lower profit. Option C is incorrect as it refers to the long run average cost which may not have any impact on short run profits. Option D is incorrect as total revenue alone cannot determine the profitability of the business. Option E is incorrect as it only refers to the cost and does not take into account the revenue generated.

Total Profit Will Be Maximized Where