The price that maximizes profit is the one that results in the greatest difference between
A) total cost and total fixed cost.
B) total revenue and total cost.
C) average cost and average variable cost.
D) total revenue and average variable cost.
E) total revenue and average fixed cost.

Question

Quizplus · Accepted Answer

The price that maximizes profit is the one that results in the greatest difference between total revenue and total cost. This is because profit equals total revenue minus total cost, and maximizing this difference leads to maximum profit.

The Price That Maximizes Profit Is the One That Results