Difference between $T R$ and $T C$ is maximum when _________.

A R = M R

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M R = M C

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M R = A C

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M C = A C

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Solution

The correct option is B $M R = M C$
Difference between TR and TC is maximum when MR=MC. Difference between total revenue and total cost indicates profits. A firm maximizes the profit when marginal revenue is equal to marginal cost.

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