Which of the following is never true for a sales revenue maximizer with an upward-sloping supply curve?
A)MR = 0
B)MR = MC
C)Economic profits are positive.
D)P = MC

Question

Which of the following is never true for a sales revenue maximizer with an upward-sloping supply curve?
A)MR = 0 
B)MR = MC 
C)Economic profits are positive.
D)P = MC

Quizplus · Accepted Answer

A sales revenue maximizer focuses on maximizing total revenue, not profit. Therefore, they will produce where marginal revenue (MR) is zero, not where MR equals marginal cost (MC), which is the condition for profit maximization.

Which of the Following Is Never True for a Sales