) The profitmaximizing price for the firm in Exhibit 103 is
A)$0
B)$27
C)$21
D)$15
E)impossible to determine because MR and MC are not known

Question

)  The profit­maximizing price for the firm in Exhibit 10­3 is
A)$0 
B)$27 
C)$21 
D)$15 
E)impossible to determine because MR and MC are not known

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal cost equals marginal revenue. In Exhibit 10-3, the MC is $9 at the output level of 6 and the MR is $21 at the output level of 6. This means that the profit-maximizing price would be $21.

) the Profit­maximizing Price for the Firm in Exhibit

) the Profitmaximizing Price for the Firm in Exhibit