Exhibit 8-9
-At the profit-maximizing output level, the firm represented in Exhibit 8-9 experiences

Question

Exhibit 8-9 
-At the profit-maximizing output level, the firm represented in Exhibit 8-9 experiences

Quizplus · Accepted Answer

At the profit-maximizing output level, the firm's marginal revenue is equal to its marginal cost, which occurs at an output level of 4. At this output level, the firm's total revenue is $8,000 (4 x $2,000) and its total cost is $6,800 (3 x $1,000 + $800). Therefore, the firm's profit is $1,200 ($8,000 - $6,800), which is option C.

Exhibit 8-9 -At the Profit-Maximizing Output Level, the Firm Represented in Exhibit