When a firm's profit maximizing sales level is positive,its marginal revenue is ______ its marginal cost at that quantity.
A) Greater than
B) Less than
C) Equal to
D) Less than or equal to

Question

Quizplus · Accepted Answer

In profit maximization, a firm's marginal revenue (MR) is equal to its marginal cost (MC) at the optimal level of output. This is because producing one more unit will add more to cost than to revenue if MR < MC, and if MR > MC, then adding more units will increase profit.

When a Firm's Profit Maximizing Sales Level Is Positive,its Marginal