Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. Figure 9.1
-Refer to Figure 9.1. For this farmer to maximize profits he should produce ________ bushels of wheat.
A) 6
B) 9
C) 12
D) 16

Question

Refer to the information provided in Figure 9.1 below to answer the question(s) that follow.  Figure 9.1
-Refer to Figure 9.1. For this farmer to maximize profits he should produce ________ bushels of wheat.
A) 6 
B) 9 
C) 12 
D) 16

Quizplus · Accepted Answer

To maximize profits, the farmer should produce where marginal cost equals marginal revenue. In most cases, this occurs at the level of output where the price of the product equals the marginal cost of production. Without the figure, we assume that this condition is met at 12 bushels.

Refer to the Information Provided in Figure 9