Whatever else you learned about profit-maximization, you should have learned this: Maximum profit is obtained at the production level where
A) P = AC
B) TR = TC
C) MR = AR
D) MR = MC
E) TR = MR

Question

Quizplus · Accepted Answer

Maximum profit is obtained at the production level where Marginal Revenue (MR) equals Marginal Cost (MC). This is a fundamental principle in economics, indicating the most efficient point of production for profit maximization.

Whatever Else You Learned About Profit-Maximization, You Should Have Learned