Profit maximization occurs when:
A) total costs equals average fixed revenue
B) average variable costs are larger than average total costs
C) total costs equal total variable costs
D) marginal variable costs equal average revenues
E) marginal revenue equals marginal cost

Question

Quizplus · Accepted Answer

As long as the revenue of the last unit produced and sold is greater than the cost of the last unit produced and sold,the firm should continue manufacturing and selling the product,but maximum profit occurs when marginal revenue equals marginal cost.

Profit Maximization Occurs When