Use the following to answer question(s):
Exhibit: Short-Run Costs

-(Exhibit: Short-Run Costs) At the given price, the most profitable level of output occurs at quantity:

Question

Use the following to answer question(s): 
Exhibit: Short-Run Costs
 
-(Exhibit: Short-Run Costs) At the given price, the most profitable level of output occurs at quantity:

Quizplus · Accepted Answer

The most profitable level of output occurs where marginal cost equals marginal revenue. At quantity S, the marginal cost intersects with the marginal revenue curve. At any point before or after S, the marginal cost is either higher or lower than the marginal revenue, resulting in lower profits.

Use the Following to Answer Question(s)