-When the firm in this figure operates at its profit-maximizing or loss-minimizing position, it will be:
A) just breaking even.
B) minimizing its loss.
C) maximizing its profit.
D) earning only a normal profit.

Question

-When the firm in this figure operates at its profit-maximizing or loss-minimizing position, it will be:
A) just breaking even. 
B) minimizing its loss. 
C) maximizing its profit. 
D) earning only a normal profit.

Quizplus · Accepted Answer

At the profit-maximizing or loss-minimizing position, a firm sets its output where marginal cost equals marginal revenue, which typically results in maximizing profit.

-When the Firm in This Figure Operates at Its Profit-Maximizing