Read the two statements and choose the correct option.

I. Total revenue is greatest where marginal revenue is zero.

II. Profit is greatest where marginal revenue is zero.

Explanation

1. 01

   I: revenue stops rising where its derivative, MR, is 0. True.

2. 02

   II: profit is greatest where $P' = MR - MC = 0$, that is $MR = MC$; MR = 0 only when MC is 0. False.