Graph 14-1

This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-1. When marginal revenue is equal to MC₃, the profit-maximising firm will produce what level of output?

Question

Graph 14-1
Graph 14-1 This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) . -Refer to Graph 14-1. When marginal revenue is equal to MC3, the profit-maximising firm will produce what level of output? A) Q1 B) Q2 C) Q3 D) Q4

Graph 14-1 This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) . -Refer to Graph 14-1. When marginal revenue is equal to MC<sub>3</sub>, the profit-maximising firm will produce what level of output? A) Q<sub>1</sub> B) Q<sub>2</sub> C) Q<sub>3</sub> D) Q<sub>4</sub>

This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-1. When marginal revenue is equal to MC₃, the profit-maximising firm will produce what level of output?

Quizplus · Accepted Answer

The profit-maximizing level of output is where marginal cost (MC) equals marginal revenue (MR), which is represented by point E in the graph. At this point, the firm is producing Q₃ units of output. Therefore, the answer is C.

Graph 14-1 This Graph Depicts the Cost Structure for a Firm in Structure