At a profit maximizing point:
A)profits are always positive.
B)marginal revenue is 0.
C)marginal cost is 0.
D)total revenue is maximized.
E)none of the above.

Question

Quizplus · Accepted Answer

At a profit maximizing point, it is not necessarily true that profits are always positive, marginal revenue or cost is 0, or that total revenue is maximized. The key condition for profit maximization is that marginal cost equals marginal revenue, not the conditions listed in options A-D.

At a Profit Maximizing Point