Profit is maximized where:
A) marginal revenue is maximized.
B) marginal revenue equals marginal cost.
C) total revenue is maximized.
D) total revenue equals total cost.

Question

Quizplus · Accepted Answer

Profit is maximized at the point where marginal revenue (MR) equals marginal cost (MC). This is because producing one more unit will add more to cost than to revenue if MR < MC, and if MR > MC, then additional production adds more to revenue than to cost, indicating that optimal profit is not yet reached.

Profit Is Maximized Where