At What Point Does a Firm Maximize Profit

question 181

Multiple Choice

At what point does a firm maximize profit?

• A) The point at which marginal cost equals marginal revenue
• B) The point at which the firm sells its product at the highest price
• C) The breakeven point plus the adjusted marginal cost
• D) The point at which marginal profits equal marginal revenue
• E) The point at which marginal cost equals marginal profits

---

Definitions:

Enforceable Contract

An enforceable contract is one where all parties involved have agreed on the terms and which can be upheld and compelled by law.

Quasi-contract

A legal concept where a court imposes a contractual obligation on a party who didn't necessarily agree to it, to prevent unjust enrichment.

Implied-in-fact Contract

is an agreement derived from the actions, conduct, or circumstances of the parties involved, rather than from explicit written or spoken terms.

Negotiable Instrument

An official document that assures the payment of a fixed sum of money, payable either on demand or at a designated time, with the document bearing the name of the person obligated to pay.