If the marginal cost and marginal revenue curves intersect at two different points,then maximum profit occurs at
A)the output level where the MC curve crosses the MR curve from below
B)the output level where the MC curve crosses the MR curve from above
C)both points
D)an output level between the two points
E)an output level beyond the second point

Question

Quizplus · Accepted Answer

Maximum profit occurs where the marginal cost (MC) curve crosses the marginal revenue (MR) curve from below, indicating that the cost of producing an additional unit is less than the revenue it generates, up to the point where they are equal.

If the Marginal Cost and Marginal Revenue Curves Intersect at Two