A business will maximize its profit by operating at the output where marginal revenue:
A) equals marginal cost.
B) is less than marginal cost.
C) is greater than marginal cost.
D) and marginal cost are both greater than zero.

Question

Quizplus · Accepted Answer

Marginal revenue equals marginal cost at the profit-maximizing level of output because it is the point where producing one more unit doesn't increase overall profit.

A Business Will Maximize Its Profit by Operating at the Output