Figure 8.4.2
-Refer to Figure 8.4.2 above. When the farmer's profit is maximized, total cost equals:
A) $1.624
B) $3.696
C) $.6226
D) $264

Question

Figure 8.4.2
-Refer to Figure 8.4.2 above. When the farmer's profit is maximized, total cost equals:
A) $1.624 
B) $3.696 
C) $.6226 
D) $264

Quizplus · Accepted Answer

When profit is maximized, the marginal revenue (MR) equals the marginal cost (MC) and the quantity produced is where the MC curve intersects the MR curve. In this graph, the MC and MR intersect at a quantity of approximately 2.6. At this quantity, the total cost is shown to be approximately $.6226. Therefore, the answer is C.

Figure 8.4.2 -Refer to Figure 8.4.2 Above. When the Farmer's Profit Is