On a graph showing a firm's TC and TR curves,the profit-maximizing level of output is found where
A)TC intersects the vertical axis.
B)TR becomes vertical.
C)TR lies above TC by the greatest amount.
D)TR and TC intersect.
E)TR is at a maximum.

Question

Quizplus · Accepted Answer

The profit-maximizing level of output is where the difference between total revenue (TR) and total cost (TC) is the greatest, which means TR lies above TC by the greatest amount.

On a Graph Showing a Firm's TC and TR Curves,the