Question

The point of maximum profit is the point at which the marginal cost equals the-
A. marginal revenue.
B. market price.
C. total revenue.
D. production cost.

Answer 1

Correct answer:

A. Marginal revenue.

Explanation:

Maximizing Gains. Statisticians show us that a corporation can maximize its value by delivering at the level where marginal revenue equals marginal cost. As long as marginal revenue is higher than the marginal value, it returns to generate further. Each computed unit sold will attach further to revenue than to costs.