Exhibit 10-3
-Refer to Exhibit 10-3. The profit-maximizing price and output are ____ and ____, respectively.

Question

Exhibit 10-3 
-Refer to Exhibit 10-3. The profit-maximizing price and output are ____ and ____, respectively.

Quizplus · Accepted Answer

To find the profit-maximizing price and output level, we need to look for the point where marginal revenue equals marginal cost. At quantity 20, the marginal cost is $11 and the marginal revenue is $11. Therefore, the profit-maximizing price is $11 and the output level is 20. Option C is the only one that matches both of these values.

Exhibit 10-3 -Refer to Exhibit 10-3. the Profit-Maximizing Price and Output Are