Profits are maximized when the firm
A)captures the largest market share in its market
B)produces at an output level where marginal revenue exceeds marginal cost
C)produces at the output level where marginal revenue equals marginal cost
D)produces at the output level where total revenue is maximized

Question

Quizplus · Accepted Answer

Profits are maximized for a firm when it produces at an output level where marginal revenue (MR) equals marginal cost (MC). This is a fundamental principle of microeconomics, indicating the most efficient point of production for profit maximization.

Profits Are Maximized When the Firm