The most profitable output level can be found by looking at which two curves?
A) P and MR.
B) MR and MC.
C) MC and TC.
D) P and AVC.
E) AVC and ATC.

Question

Quizplus · Accepted Answer

The most profitable output level is where MR = MC, as this is the point where the additional revenue gained from producing one more unit is equal to the additional cost of producing that unit. Therefore, the most profitable output level can be found by looking at the MR and MC curves.

The Most Profitable Output Level Can Be Found by Looking