The point at which marginal cost and marginal revenue are equal always results in:
A) maximization of elasticity
B) maximization of revenue
C) maximization of costs
D) maximization of profits
E) break-even equilibrium

Question

Quizplus · Accepted Answer

Until the point where MC = MR,each unit of sales has contributed to additional profit;therefore,profit,not revenue or costs,has been maximized at MC = MR.

The Point at Which Marginal Cost and Marginal Revenue Are