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Profit is maximised where
AMR > MC (typical) (typical)
BMR < MC (typical) (typical)
CMR = AC (typical) (typical)
DMR = MC and dMC/dQ > dMR/dQ
Answer & Solution
Correct answer: D. MR = MC and dMC/dQ > dMR/dQ
1. First-order condition for profit max: MR = MC.
2. Second-order: the slope of MC must cut MR from below (i.e. MC rising faster than MR at intersection).
3. Combined, the firm produces where MR = MC with the right curvature.
4. Hence (C) is the complete answer.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 7 "Application of Derivatives", §7.3 ¶§7.3_
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