Which of the following statements about the profit maximizing quantity of output is false?
A)the Profit curve is flat
B)Total Revenue = Total Cost
C)the TR and TC curves are parallel
D)Marginal Revenue = Marginal Cost

Question

Quizplus · Accepted Answer

At the profit-maximizing quantity, Total Revenue equals Total Cost is not true; this would imply zero profit. Instead, profit maximization occurs where Marginal Revenue equals Marginal Cost.

Which of the Following Statements About the Profit Maximizing Quantity