Q113
Profit is maximum when
A.
TC and TR curves are parallel
AnswerB.
MC and MR curves are parallel
C.
TC and TR curves cross each other
D.
AC and AR curves cross each other
Answer: Option A
Solution
Answer: Option A
Solution:
Profit is maximum when TC and TR curves are parallel. Profit becomes maximum irrespective of the market situation, when the difference between total revenue (TR) and total cost (TC) becomes the greatest.