Table 14-5
Suppose that a firm in a competitive market faces the following revenues and costs:

$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Marginal Cost } \
\text { (Dollars) }
\end{array} & \begin{array} { c }
\text { Marginal Revenue } \
\text { (Dollars) }
\end{array} \
\hline 12 & 5 & 7 \
\hline 13 & 6 & 7 \
\hline 14 & 7 & 7 \
\hline 15 & 8 & 7 \
\hline 16 & 9 & 7 \
\hline 17 & 10 & 7 \
\hline
\end{array}$$
-Refer to Table 14-5. If the firm is maximizing profit, how much profit is it earning?

Question

Table 14-5
Suppose that a firm in a competitive market faces the following revenues and costs:
​
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Marginal Cost } \
\text { (Dollars) }
\end{array} & \begin{array} { c } 
\text { Marginal Revenue } \
\text { (Dollars) }
\end{array} \
\hline 12 & 5 & 7 \
\hline 13 & 6 & 7 \
\hline 14 & 7 & 7 \
\hline 15 & 8 & 7 \
\hline 16 & 9 & 7 \
\hline 17 & 10 & 7 \
\hline
\end{array}$$
-Refer to Table 14-5. If the firm is maximizing profit, how much profit is it earning?

Quizplus · Accepted Answer

Profit maximization occurs where marginal revenue (MR) equals marginal cost (MC). The table shows MR and MC for different quantities, but it does not provide information on total costs or total revenue, which are necessary to calculate profit.

Table 14-5 Suppose That a Firm in a Competitive Market

Table 14-5
Suppose That a Firm in a Competitive Market