A firm sets its output where
A)marginal profit is zero.
B)marginal revenue is maximized.
C)marginal profit equals marginal revenue.
D)marginal profit is maximized.

Name: A firm sets its output where A)marginal profit is zero. B)marginal revenue is maximized. C)marginal profit equals marginal revenue. D)marginal profit is maximized.
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Question

Quizplus · Accepted Answer

Marginal profit is zero at the point where a firm maximizes its profit, as any additional unit produced would not increase profit.

A Firm Sets Its Output Where