Revenue maximization occurs when a firm sells at a price
A)that is equal to its minimum average variable cost.
B)where its marginal revenue is equal to its marginal cost.
C)where its marginal revenue is zero.
D)None of the above

Question

Quizplus · Accepted Answer

Revenue maximization occurs when marginal revenue is zero because any additional unit sold beyond this point would decrease total revenue.

Revenue Maximization Occurs When a Firm Sells at a Price