Exhibit 22-8

-Refer to Exhibit 22-8. What is the profit (loss) of firm B at the profit-maximizing (or loss-minimizing) level of production?

Question

Exhibit 22-8
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-Refer to Exhibit 22-8. What is the profit (loss) of firm B at the profit-maximizing (or loss-minimizing) level of production?

Quizplus · Accepted Answer

Firm B's profit (or loss) at the profit-maximizing level of production is determined by comparing total revenue and total cost at that level. The profit-maximizing level is where marginal cost (MC) equals marginal revenue (MR), which is not directly provided in the question. However, assuming the firm aims to minimize losses or maximize profits by adjusting output to where MR = MC, and given the options, a loss of $600 suggests the scenario where total costs exceed total revenues by the greatest amount among the negative options provided. Without specific exhibit details, the exact calculation can't be shown, but the correct answer is inferred based on the information that a loss is involved and the options given.

Exhibit 22-8 ​

Exhibit 22-8