Producing any quantity of output greater than the point where the marginal revenue and marginal cost curves intersect leads to:
A)marginal revenue that is lower than marginal cost.
B)the maximization of profits.
C)average total cost that is equal to average variable cost.
D)marginal revenue that is higher than marginal cost.

Question

Quizplus · Accepted Answer

When the quantity of output is increased beyond the point where marginal revenue (MR) equals marginal cost (MC), MR becomes lower than MC, indicating that the additional cost of producing one more unit is higher than the revenue generated from selling that unit, leading to decreased profitability.

Producing Any Quantity of Output Greater Than the Point Where