Figure 8-5
-At a profit-maximizing output level,
A)marginal revenue minus marginal cost equals zero.
B)marginal profit equals zero.
C)the slope of the total profit curve is zero.
D)All of the responses are correct.

Question

Figure 8-5 
-At a profit-maximizing output level,
A)marginal revenue minus marginal cost equals zero. 
B)marginal profit equals zero. 
C)the slope of the total profit curve is zero. 
D)All of the responses are correct.

Quizplus · Accepted Answer

At the profit-maximizing output level, marginal revenue equals marginal cost, which means marginal profit (the difference between marginal revenue and marginal cost) equals zero, and the slope of the total profit curve (which is the marginal profit) is also zero. Thus, all statements are correct descriptions of the profit-maximizing condition.

Figure 8-5 -At a Profit-Maximizing Output Level