Figure: The Marginal Decision Rule
(Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule.If P₁ is the market price and if this firm is profit maximizing, it should produce:
A.where MR MC.
B.at quantity Q₂.
C.at quantity Q₁ where MR MC.
D.a quantity greater than Q₁ but less than Q₂.

Question

Figure: The Marginal Decision Rule
  (Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule.If P₁ is the market price and if this firm is profit maximizing, it should produce: 
A.where MR > MC.
B.at quantity Q₂.
C.at quantity Q₁ where MR > MC.
D.a quantity greater than Q₁ but less than Q₂.

Quizplus · Accepted Answer

The Answer of Figure: The Marginal Decision Rule
  (Figure: Marginal Decision Rule) Look at the figure The Marginal Decision Rule.If P₁ is the market price and if this firm is profit maximizing, it should produce: 
A.where MR > MC.
B.at quantity Q₂.
C.at quantity Q₁ where MR > MC.
D.a quantity greater than Q₁ but less than Q₂.

Figure: the Marginal Decision Rule