Q221
Profit is maximum when
A.
Slope of MC and Mr is the same
B.
Slope of TC and TR is the same
AnswerC.
Slope of AC and AR is the same
D.
None of the above
Answer: Option B
Solution
Answer: Option B
Solution:
Profit is maximum when Slope of TC and TR is the same. To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC).