Profit Maximization: Definition, Equation & Theory

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is profit maximization?

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1. How is MR different from MC?

2. How does marginal revenue appear on a graph?

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About This Quiz & Worksheet

This quiz and corresponding worksheet will help you gauge your knowledge of the profit maximization theory ways to identify what can bring in the most returns to a company. Quiz questions will check your understanding what profit maximization is as well as the steps to calculate profit maximization.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to review:

  • The definition of profit maximization
  • How to calculate profit maximization
  • What MR and MC represents in the profit maximization equation
  • The formula for profit maximization

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Interpreting information - verify you can read information regarding what MR represents in a profit maximization equation and interpret it correctly
  • Reading comprehension - ensure that you draw the most important information from the related profit maximization lesson
  • Knowledge application - use your knowledge to answer questions about the formula for profit maximization

Additional Learning

To learn more about how to find this key sales level, review the corresponding lesson on the Profit Maximization: Definition, Equation & Theory. This lesson will help you:

  • Understand what profit maximization is
  • Explain why you may not always realize the best profits from the highest prices
  • Describe how to determine the best condition for a company with its sales
  • Appreciate the difference between marginal cost and marginal revenue
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