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Market and Types of Goods · UPSC CDS/OTA · Question 41 of 66

Market and Types of Goods: When marginal revenue equals marginal cost, a firm

Step-by-step solution. Market and Types of Goods for UPSC CDS/OTA.

Topic
Market and Types of Goods
Subject
General Studies
Difficulty
moderate
Solve Time
45-60 sec

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Q · Market and Types of Goodsmoderate · 45s

When marginal revenue equals marginal cost, a firm:

TopicMarket and Types of Goods
Question Typemultiple choice
Difficultymoderate
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

The complete worked solution.

Every step explained - no skipped algebra.

Profit maximization occurs at MR=MC.Meaning: Optimal output point.Correct: A is correct.Incorrect: B is partial; C occurs if price<AVC; D may overshoot.

Final Answer: Option A - Maximizes profit
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When marginal revenue equals marginal cost, a firm - Market and Types of Goods (General Studies) Solved Question