Total profit is maximized at the output level at which the:
A) vertical distance between the total revenue curve and the total cost curve is maximized.
B) total cost and total revenue curves intersect.
C) area between the total revenue and total cost curves is greatest.
D) vertical distance between the total revenue and total cost curves is minimized.

Question

Quizplus · Accepted Answer

Total profit is maximized when the vertical distance between the total revenue curve and the total cost curve is maximized, as this represents the greatest difference between revenue and cost, i.e., the highest profit.

Total Profit Is Maximized at the Output Level at Which