Read the two statements and choose the correct option.
I. At the output of greatest profit, marginal revenue equals marginal cost.
II. At the output of greatest revenue, marginal revenue is zero.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

I: profit $P = R - C$ is greatest where $P' = R' - C' = 0$ , that is $MR = MC$ . True.
II: revenue is greatest where $R' = 0$ , that is $MR = 0$ . True.

Ten questions from Rate of Change, Marginal Cost & Revenue, at your own pace.

Ten questions from Rate of Change, Marginal Cost & Revenue, at your own pace.

Read the two statements and choose the correct option.I. At the output of greatest profit, marginal revenue equals marginal cost.II. At the output of greatest revenue, marginal revenue is zero.