-Refer to the graph above.To maximize profit,the firm will choose to produce __________ units and charge a price of __________ per unit.
A) 3.5;$33.50
B) 7;$19.30
C) 7;$5
D) 3.5;$5
E) 3.5;$22.50

Question

-Refer to the graph above.To maximize profit,the firm will choose to produce __________ units and charge a price of __________ per unit.
A) 3.5;$33.50 
B) 7;$19.30 
C) 7;$5 
D) 3.5;$5 
E) 3.5;$22.50

Quizplus · Accepted Answer

To maximize profit, the firm should produce where marginal cost equals marginal revenue. The graph indicates that this occurs at 3.5 units, with a price of $22.50 per unit.

-Refer to the Graph Above