- 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
Total profit is maximized at the output level at which ______
A. the vertical distance between the total revenue curve and the total cost curve is maximized.
B. the total cost and total revenue curves intersect.
C. the area between the total revenue and total cost curves is greatest.
Explanation: Total profit at a particular output level is the difference between total revenue and total cost at that output level.
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