Total profit is maximized when marginal benefit equals marginal cost.

Name: Total profit is maximized when marginal benefit equals marginal cost.
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Quizplus · Accepted Answer

This statement is a basic principle of economics known as the "marginal principle" and is widely accepted as true. When marginal benefit equals marginal cost, there is no additional benefit or cost to producing more of a good or service, so there is no further gain to be made in terms of profit.

Total Profit Is Maximized When Marginal Benefit Equals Marginal Cost