Total profit is maximized
A)where the difference between total revenue and total cost is greatest.
B)at that output level where marginal revenue equals average cost.
C)where total revenue is at a maximum.
D)at the point where all variable costs are covered.

Question

Quizplus · Accepted Answer

Total profit is maximized where the difference between total revenue and total cost is greatest, as profit is defined as total revenue minus total cost.

Total Profit Is Maximized