(Figure: Profit-maximizing Quantity and Price II) Which of the following statements is (are) TRUE? I. If the firm is producing 5 units of output, it should expand output to increase profits because P MC.
II) At a price of $16, the firm's profits would rise if it raised its price.
III) The profit-maximizing quantity is 600 units.
IV) The profit-maximizing price is $13.

Question

(Figure: Profit-maximizing Quantity and Price II) Which of the following statements is (are) TRUE?  I. If the firm is producing 5 units of output, it should expand output to increase profits because P > MC.
II) At a price of $16, the firm's profits would rise if it raised its price.
III) The profit-maximizing quantity is 600 units.
IV) The profit-maximizing price is $13.

Quizplus · Accepted Answer

The Answer of (Figure: Profit-maximizing Quantity and Price II) Which of the following statements is (are) TRUE?  I. If the firm is producing 5 units of output, it should expand output to increase profits because P > MC.
II) At a price of $16, the firm's profits would rise if it raised its price.
III) The profit-maximizing quantity is 600 units.
IV) The profit-maximizing price is $13.

(Figure: Profit-Maximizing Quantity and Price II) Which of the Following