When total revenue is at a maximum
A) average revenue is at a maximum.
B) marginal revenue is at a maximum.
C) average revenue is equal to zero.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

When total revenue is at a maximum, it does not necessarily mean that average revenue or marginal revenue is at a maximum. Instead, at the point of maximum total revenue, marginal revenue equals zero. This is because any additional unit sold would not increase total revenue further.

When Total Revenue Is at a Maximum