AP® Microeconomics

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Moderate

Profit-Maximizing Output

APMICR-SEQIZD

Which of the following describe(s) the output at which an individual firm would be profit-maximizing?

I. ​ Marginal cost exceeds marginal revenue by the greatest amount.
II. Marginal revenue is equal to marginal cost.
III. Total revenue exceeds total cost by the greatest amount.
IV. Marginal revenue exceeds marginal cost by the greatest amount.

A

I and II only

B

III and IV only

C

I and IV only

D

II and III only

E

I, II, III, and IV