Total Profit Is Maximized

question 197

Multiple Choice

Total profit is maximized

• A)where the difference between total revenue and total cost is greatest.
• B)at that output level where marginal revenue equals average cost.
• C)where total revenue is at a maximum.
• D)at the point where all variable costs are covered.

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Definitions:

Sherman Act

The federal antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses.

Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is a U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil.

U.S. Justice Department

The federal executive department responsible for overseeing the enforcement of federal laws, including antitrust law, civil rights, and criminal law.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolistic business practices.