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Question 16 of 42

Q.The profit of a function p(x)p(x) is maximum when :

(a) MR=0MR = 0
(b) MC−MR=0MC - MR = 0
(c) MC+MR=0MC + MR = 0
(d) MC=0MC = 0
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2022MCQ· 1mImportance★★★★★
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Profit peaks when MC=MRMC = MR, i.e. MC−MR=0MC - MR = 0.

Profit is total revenue minus total cost: p(x)=R(x)−C(x)p(x) = R(x) - C(x). For a maximum, differentiate and set the derivative to zero:

dpdx=dRdx−dCdx=MR−MC=0.\frac{dp}{dx} = \frac{dR}{dx} - \frac{dC}{dx} = MR - MC = 0.

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