The profit outcome achieved by setting MC = MR is the same as that achieved by setting TR = TC.

Name: The profit outcome achieved by setting MC = MR is the same as that achieved by setting TR = TC.
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Question

Quizplus · Accepted Answer

Setting MC = MR (Marginal Cost equals Marginal Revenue) is a rule for maximizing profit, not for determining the profit level itself. TR = TC (Total Revenue equals Total Costs) determines the break-even point, not the profit maximization point.

The Profit Outcome Achieved by Setting MC = MR Is