Profit Maximization Occurs When Marginal Revenue Equals

question 66

Multiple Choice

Profit maximization occurs when marginal revenue equals

• A) marginal profit.
• B) marginal sale.
• C) marginal cost.
• D) cost-plus pricing.

---

Definitions:

Market Risk Premium

The extra return investors expect to earn from holding a risky market portfolio instead of risk-free securities.

Beta

An indicator of how much a stock fluctuates in comparison to the general market, with a beta above 1 signifying more volatility than the market average.

Required Rate Of Return

The lowest yearly percentage gain necessary to attract individuals or organizations to invest in a specific security or project.

Deflation

A decrease in the general price level of goods and services over a period, leading to increased purchasing power of money.