Profit-maximizing firms want to maximize the difference between
A) total revenue and marginal cost.
B) total revenue and total cost.
C) marginal revenue and marginal cost.
D) marginal revenue and average cost.

Question

Quizplus · Accepted Answer

Profit is maximized when the difference between total revenue and total cost is at its greatest. This is the fundamental goal of profit-maximizing firms.

Profit-Maximizing Firms Want to Maximize the Difference Between