A firm wishing to maximize profits will produce at the level of output where:
A)marginal cost is equal to zero.
B)its total-cost curve intersects its total-revenue curve.
C)costs are at a minimum.
D)total revenue exceeds total cost by the largest amount.
E)marginal revenue exceeds marginal cost by the greatest amount.

Question

Quizplus · Accepted Answer

A firm maximizes profit where the difference between total revenue and total cost is the greatest, which means total revenue exceeds total cost by the largest amount.

A Firm Wishing to Maximize Profits Will Produce at the Level