CFA Practice Question

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CFA Practice Question

The profit maximization decision is producing the level of output such that ______

I. MR is not rising.
II. MC is not falling.
Correct Answer: II and III

User Contributed Comments 5

User Comment
maryprz14 Can someone explain this please?
babycdq Why I is wrong?
choas69 WHY 2 is right?
Samir3112 MC assumes an U shaped curve in the short run, so for low levels of cost , the MR curve might intersect MC curve at two different points. W e need to choose only that point(quantity of output) where MC is increasing.
MathLoser Guys, watch this awesome video. He explained: OMG I can't paste the link here.
Search Maximizing Profit Practice - Micro Topic 3.5 Jacob Clifford on youtube.
And that guys explained many things about micro and macro topics. I found it worth reading like diminishing return, short run, long run, etc
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