10
QuizMultiple Choice

Microeconomics — Test

Question 10 • Personal Finance and Economics

The point of maximum profit is the point at which the marginal cost equals the

Answer
A
production cost.
B
marginal revenue.
C
total revenue.
D
market price.

Explanation

Profit is maximized where marginal revenue equals marginal cost: producing one more unit adds the same amount to revenue as it adds to cost. If marginal revenue were greater, producing more would increase profit; if it were lower, producing less would increase profit. Therefore, the correct choice is marginal revenue.

AI-written and checked against the verified answer.

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