If the market price is $15 and marginal cost is represented by the equation 2 * Q,where Q is in thousands of units,what is the profit-maximizing quantity?

Question

Quizplus · Accepted Answer

To maximize profit, a firm should produce where marginal cost equals marginal revenue. In this case, the market price is given as $15, which is also the marginal revenue. Setting marginal cost equal to marginal revenue, we get:

2 F1F1F1S1F1F1F10 Q = 15

Simplifying, we get:

Q = 7.5

Since Q is given in thousands of units, the profit-maximizing quantity is:

7.5 x 1000 = 7500

Therefore, the best choice is D.

If the Market Price Is $15 and Marginal Cost Is