Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. Figure 8.8
-Refer to Figure 8.8. If this farmer produces the profit-maximizing level of soybeans when the market price is $8 per bushel, then her total cost would be
A) $1,200.
B) $2,800.
C) $5,600.
D) $8,400.

Question

Refer to the information provided in Figure 8.8 below to answer the question(s) that follow.  Figure 8.8
-Refer to Figure 8.8. If this farmer produces the profit-maximizing level of soybeans when the market price is $8 per bushel, then her total cost would be
A) $1,200. 
B) $2,800. 
C) $5,600. 
D) $8,400.

Quizplus · Accepted Answer

At the profit-maximizing level of production, marginal cost (MC) equals the market price. If the market price is $8 per bushel, we find the quantity where MC = $8. Then, we calculate total cost (TC) at that quantity, which is represented by the area under the MC curve up to that quantity. Based on the information provided, the correct total cost associated with this level of production is $5,600.

Refer to the Information Provided in Figure 8