Exhibit 6-4
-Refer to Exhibit 6-4. If output price is $14, the profit-maximizing output level is ____ units.
A)2
B)5
C)3
D)4

Name: Exhibit 6-4 -Refer to Exhibit 6-4. If output price is $14, the profit-maximizing output level is ____ units. A)2 B)5 C)3 D)4
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Question

Exhibit 6-4 
-Refer to Exhibit 6-4. If output price is $14, the profit-maximizing output level is ____ units.
A)2 
B)5 
C)3 
D)4

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal cost equals marginal revenue. If the output price is $14, the firm should produce the quantity where the marginal cost is closest to $14 without exceeding it.

Exhibit 6-4 -Refer to Exhibit 6-4. If Output Price Is $14, the Is