Refer to the above diagram for athletic shoes.The optimal output of shoes: A)is Q₁. B)is Q₂. C)is Q₃. D)is greater than Q₃.

Question

Quizplus · Accepted Answer

The optimal output of shoes is where the marginal cost (MC) equals marginal revenue (MR). At Q₂, the MC and MR intersect, indicating that this is the optimal output level. Any output level beyond Q₂ would result in higher production costs and lower profits. Therefore, the best choice is B.

Refer to the Above Diagram for Athletic Shoes