Use the following to answer question(s):
Exhibit: Total Revenue, Total Cost, and Economic Profit

-(Exhibit: Total Revenue, Total Costs, and Economic Profit) The firm maximizes economic profit when the _______ of the total revenue and total cost curves are _______ and when _______ and ________ are equal.

Question

Use the following to answer question(s): 
Exhibit: Total Revenue, Total Cost, and Economic Profit
 
-(Exhibit: Total Revenue, Total Costs, and Economic Profit) The firm maximizes economic profit when the _______ of the total revenue and total cost curves are _______ and when _______ and ________ are equal.

Quizplus · Accepted Answer

The firm maximizes economic profit when the slopes of the total revenue and total cost curves are equal, which is the point where marginal revenue and marginal cost are also equal.

Use the Following to Answer Question(s)