Table 14-1
This table shows the revenue and costs of a parrot farmer.
-Refer to Table 14-1.If the farmer chooses to maximise profit, the appropriate output level is where marginal cost is equal to:

Question

Table 14-1
This table shows the revenue and costs of a parrot farmer. 
-Refer to Table 14-1.If the farmer chooses to maximise profit, the appropriate output level is where marginal cost is equal to:

Quizplus · Accepted Answer

In economics, the profit-maximizing output level for a firm occurs where marginal cost (MC) equals marginal revenue (MR). Without seeing Table 14-1, we typically assume the market is competitive, meaning MR equals the price. Therefore, the correct choice is where MC equals the price the firm receives for its product, which is given as $10 in option B.

Table 14-1 This Table Shows the Revenue and Costs of a Parrot