Refer to the accompanying figure.Point _________ corresponds to the profit-maximizing quantity that a competitive firm would produce.

Question

Quizplus · Accepted Answer

The profit-maximizing quantity for a competitive firm is where marginal cost (MC) equals marginal revenue (MR) and the firm produces where P = MC. This occurs at the point where the MC curve intersects the MR curve and where the MC curve is rising. This point is at point C in the given figure.

Refer to the Accompanying Figure