Maximum profit occurs wherever:
A) the slope of the total revenue function equals marginal revenue.
B) the slope of the total revenue function equals marginal cost.
C) the slope of the total revenue function is maximized.
D) the total revenue is maximized.
E) none of the above.

Question

Quizplus · Accepted Answer

The maximum profit occurs where marginal revenue equals marginal cost, which is equivalent to setting the slope of the total revenue function equal to marginal cost. Therefore, choice B is the correct answer.

Maximum Profit Occurs Wherever