In the above diagram profit is maximized at point

Question

Quizplus · Accepted Answer

Profit is maximized at the point where Marginal Revenue (MR) equals Marginal Cost (MC). In the above diagram, MR is represented by the red line and MC is represented by the blue line. 
At point C, MR intersects with MC and the output level is Q*. At this point, the firm is producing the optimal level of output where the cost of producing an additional unit (MC) is equal to the revenue generated by selling that unit (MR), resulting in maximum profit. 
Thus, the best choice is C.

In the Above Diagram Profit Is Maximized at Point