The profit maximizing or loss minimizing quantity of output for any firm to produce exists at that output level in which:
A) total revenue is maximized.
B) total cost is minimized.
C) marginal cost is minimized.
D) marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

The profit maximizing (or loss minimizing) quantity of output is where marginal revenue equals marginal cost. At this point, the additional revenue generated from selling one more unit is equal to the additional cost of producing that unit, thus maximizing profit or minimizing losses.

The Profit Maximizing or Loss Minimizing Quantity of Output for Any