) At the profitmaximizing output level, total cost for the firm in Exhibit 107is approximately
A)$5,700
B)$5,320
C)$4,750
D)$4,940
E)$8,100

Question

)  At the profit­maximizing output level, total cost for the firm in Exhibit 10­7is approximately
A)$5,700 
B)$5,320 
C)$4,750 
D)$4,940 
E)$8,100

Quizplus · Accepted Answer

To identify the profit-maximizing output level, we need to look for the point where marginal revenue (MR) equals marginal cost (MC). Based on the graph in Exhibit 10-7, this occurs at an output level of approximately 8,000 units. At this output level, the MC is approximately $620, and the total cost is approximately $4,940 (since fixed costs are already paid). Therefore, the correct answer is D.

) at the Profit­maximizing Output Level, Total Cost for the Firm

) at the Profitmaximizing Output Level, Total Cost for the Firm