Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
When marginal revenue is equal to marginal cost, the profit of a firm is"
Options:
Zero
Maximum
Negative
Average
Correct Answer:
Maximum
Explanation:
A firm is in equilibrium when marginal revenue is equal to marginal cost and the profits of the firm are maximum at this point.