A rational firm will only seek to maximize total revenue if:
A)it faces a totally inelastic demand curve.
B)its marginal cost curve falls and then rises.
C)its average costs are falling.
D)it is a perfect monopoly.
E)its variable costs are zero.

Question

Quizplus · Accepted Answer

A firm will seek to maximize total revenue when its variable costs are zero because, in this case, maximizing revenue directly translates to maximizing profit, as there are no variable costs to subtract from revenue.

A Rational Firm Will Only Seek to Maximize Total Revenue