When marginal cost is equal to marginal revenue, _____.
A) the market is perfectly competitive
B) proﬁts are maximized
C) average costs are minimized
D) revenues are maximized

Question

Quizplus · Accepted Answer

When marginal cost equals marginal revenue, it indicates the level of output at which profits are maximized. This is a fundamental principle in economics for profit-maximizing firms.

When Marginal Cost Is Equal to Marginal Revenue, _____