Profits are maximized when

Question

Quizplus · Accepted Answer

Profits are maximized at the point where the additional cost of producing one more unit (marginal cost) is equal to the additional revenue gained from selling that one more unit (marginal revenue). This is because at this point, producing any more would add more to costs than to revenues, reducing profits, and producing any less would add more to revenues than to costs, indicating that not all profitable opportunities are being taken advantage of.

Profits Are Maximized When