If a firm chooses to produce output at the point where MR equals MC,
A)then TR - TC will be maximized if there is a profit
B)economic profits will be zero
C)there will be positive accounting profits
D)there will be positive economic profits
E)average cost must equal average revenue

Question

Quizplus · Accepted Answer

When a firm produces where MR = MC, it maximizes its profit, meaning TR - TC is maximized if there is a profit.

If a Firm Chooses to Produce Output at the Point