At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves?
A) They must intersect, with TC cutting TR from below.
B) They must intersect, with TC cutting TR from above.
C) They must be tangent to each other.
D) They cannot be tangent to each other.
E) They must have the same slope.

Question

Quizplus · Accepted Answer

At the profit-maximizing level of output, the slopes of the TR and TC curves are equal, meaning marginal revenue (MR) equals marginal cost (MC).

At the Profit-Maximizing Level of Output, What Is Relationship Between