A business will maximize its profit by operating at the output level where:
A) marginal revenue equals marginal cost.
B) the business' net benefit is as large as possible.
C) total revenue exceeds total cost by the greatest amount.
D) all of the above.

Question

Quizplus · Accepted Answer

All the statements describe the same condition from different perspectives. Marginal revenue equaling marginal cost, maximizing net benefit, and maximizing the difference between total revenue and total cost are all conditions for maximizing profit.

A Business Will Maximize Its Profit by Operating at the Output