Figure 8.3.1
-Refer to Figure 8.3.1 above. At which point or range is profit maximized?
A) Between points A and B
B) At point B
C) Between points B and C
D) At point C

Question

Figure 8.3.1
-Refer to Figure 8.3.1 above. At which point or range is profit maximized?
A) Between points A and B 
B) At point B 
C) Between points B and C 
D) At point C

Quizplus · Accepted Answer

Profit is maximized at the point where MR = MC, which is point B in this figure. At this point, the firm produces Q units and charges P price, resulting in the highest possible profit.

Figure 8.3.1 -Refer to Figure 8.3.1 Above. at Which Point or Range