-Refer to the diagram above.If the seller expects a price of $48,
A) it is not profitable to produce any level of output.
B) any level of output will be profitable.
C) the minimum level of production is 18.
D) the minimum level of production is 21.
E) the maximum level of production is 24.

Question

-Refer to the diagram above.If the seller expects a price of $48,
A) it is not profitable to produce any level of output. 
B) any level of output will be profitable. 
C) the minimum level of production is 18. 
D) the minimum level of production is 21. 
E) the maximum level of production is 24.

Quizplus · Accepted Answer

The seller expects a price of $48, but the marginal cost of production is $50. Therefore, it is not profitable to produce any level of output.

-Refer to the Diagram Above