- Refer to Table 26.1.In order to maximize profit,Will's Beach Ball Company should produce _______ and charge a price of _______ each.
A)6 beach balls;$11
B)7 beach balls;$10
C)8 beach balls;$9

Question

- Refer to Table 26.1.In order to maximize profit,Will's Beach Ball Company should produce _______ and charge a price of _______ each.
A)6 beach balls;$11 
B)7 beach balls;$10 
C)8 beach balls;$9

Quizplus · Accepted Answer

To maximize profit, Will's Beach Ball Company should produce the quantity where marginal cost equals marginal revenue. This typically occurs before the marginal cost exceeds the marginal revenue, which is often at a lower quantity than the maximum production capacity. Based on the given options, producing 7 beach balls and charging $10 each is likely the point where profit is maximized.