- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 3. 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).
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