37
QuizMultiple Choice

The American Market Economy — Test

Question 37 • Economics

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

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

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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