Commerce · Q216

Economics

Graduate and Post Graduate · Commerce · question 216

Q216

Profit is maximum when

A.

Distance between TR and TC is maximum

Answer

B.

Distance between AR and AC is maximum

C.

Distance between MR and MC is maximum

D.

None of the above

Answer: Option A

Solution

Answer: Option A

Solution:

Profit is maximum when Distance between TR and TC is maximum. At the equilibrium point, the firm earns maximum profits.

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