- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 12. Topics in Demand and Supply Analysis
- Subject 6. Marginal Revenue, Marginal Cost, and Profit Maximization
CFA Practice Question
One of the two conditions for profit maximization is to produce the quantity of output at which ______.
II. MRP = MC
III. MR = MC
IV. MR = W (wage rate)
I. MP = MC
II. MRP = MC
III. MR = MC
IV. MR = W (wage rate)
Correct Answer: III
For profit maximization, produce the quantity of output at which marginal revenue (MR) equals marginal cost (MC).
User Contributed Comments 0
You need to log in first to add your comment.