Profit maximization occurs when marginal revenue equals
A) marginal profit.
B) marginal sale.
C) marginal cost.
D) cost-plus pricing.

Name: Profit maximization occurs when marginal revenue equals A) marginal profit. B) marginal sale. C) marginal cost. D) cost-plus pricing.
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Question

Quizplus · Accepted Answer

Profit maximization occurs when marginal revenue equals marginal cost, as this is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit.

Profit Maximization Occurs When Marginal Revenue Equals