At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves?

A) They must intersect, with TC cutting TR from below.
B) They must intersect, with TC cutting TR from above.
C) They must be tangent to each other.
D) They cannot be tangent to each other.
E) They must have the same slope.

Total Revenue

The overall amount of money generated from sales of goods or services, calculated as quantity sold times price per unit.

Total Cost

The aggregate cost of all inputs used in the production of goods or services, including fixed and variable costs.

Profit-Maximizing Level

The output level at which a firm achieves the highest profit, determined by where marginal cost equals marginal revenue.