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Question 38 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 2026MCQ· 1mImportance★★★★★
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Profit is maximum where marginal revenue equals marginal cost: MR=MCMR=MC, i.e. MC−MR=0MC-MR=0.

Profit is p(x)=R(x)−C(x)p(x)=R(x)-C(x), where RR is total revenue and CC is total cost. For a maximum, the first derivative must vanish:

p′(x)=R′(x)−C′(x)=MR−MC=0  ⇒  MR=MC.p'(x) = R'(x) - C'(x) = MR - MC = 0 \;\Rightarrow\; MR = MC.

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