Total profit is maximized when marginal benefit _____ marginal cost.

A) is more than
B) is less than
C) is equal to
D) approaches

Question

Total profit is maximized when marginal benefit _____ marginal cost.A) is more thanB) is less thanC) is equal toD) approaches

Altynay Alibekova · Accepted Answer

Final Answer : C, Explanation :  When marginal benefit is equal to marginal cost, it means that the last unit produced is generating the same amount of revenue as it costs to produce it. Any additional unit produced would result in a decrease in profit. Therefore, total profit is maximized when marginal benefit equals marginal cost.

Total profit is maximized when marginal benefit _____ marginal cost.

A) is more than
B) is less than
C) is equal to
D) approaches

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