Profit is maximized when which of the following conditions occurs?

Question

Quizplus · Accepted Answer

Profit is maximized when marginal revenue equals marginal cost. This is because any additional unit produced would incur a cost equal to its marginal cost, and would generate a revenue equal to its marginal revenue. Therefore, producing additional units when MR>MC increases profit, but producing additional units when MR<MC decreases profit. Thus, at the point where MR=MC, profit is maximized.

Profit Is Maximized When Which of the Following Conditions Occurs