The firm will be making maximum profits by expanding output to the level where:

CA Foundation · Business Economics · PYQS · May 2025
The firm will be making maximum profits by expanding output to the level where:
(A) A. Marginal revenue is greater than marginal cost
(B) B. Marginal revenue is equal to marginal cost
(C) C. Marginal revenue is less than marginal cost
(D) D. Marginal revenue is equal to average cost

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Marginal revenue is equal to marginal cost

Topics: Price Determination in Different Markets

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