Marginal revenue and marginal cost
The figure shows the graph of revenue function y = R(x) and cost function y = C(x).
(a) At which of the four x-values shown is the profit largest?
(b) At which of the four x-values shown is the slope of the tangent to the revenue curve equal to the slope of the tangent to the cost curve?
(c) What is the relationship between marginal cost and marginal revenue when profit is at its maximum value?
