The following graph shows the marginal revenue (MR) and marginal cost (MC) curves of an imperfectly competitive firm. Figure 8.2
- Refer to Figure 8.2.If the current production level is 90 and the firm wishes to maximize profit,it should:
A)leave the current production level unchanged.
B)decrease the quantity produced to 75.
C)decrease the quantity produced to 50.
D)decrease the quantity produced to 35.
E)increase production until MR = MC.

Question

The following graph shows the marginal revenue (MR) and marginal cost (MC) curves of an imperfectly competitive firm. Figure 8.2 
- Refer to Figure 8.2.If the current production level is 90 and the firm wishes to maximize profit,it should:
A)leave the current production level unchanged. 
B)decrease the quantity produced to 75. 
C)decrease the quantity produced to 50. 
D)decrease the quantity produced to 35. 
E)increase production until MR = MC.

Quizplus · Accepted Answer

The Answer of The following graph shows the marginal revenue (MR) and marginal cost (MC) curves of an imperfectly competitive firm. Figure 8.2 
- Refer to Figure 8.2.If the current production level is 90 and the firm wishes to maximize profit,it should:
A)leave the current production level unchanged. 
B)decrease the quantity produced to 75. 
C)decrease the quantity produced to 50. 
D)decrease the quantity produced to 35. 
E)increase production until MR = MC.

The Following Graph Shows the Marginal Revenue (MR) and Marginal