Graph 14-1
This graph depicts the cost structure for a firm in a competitive market.Use the graph to answer the following question(s) .
-Refer to Graph 14-1.When marginal revenue is equal to MC₃, the profit-maximising firm will produce what level of output?

Question

Graph 14-1 Graph 14-1 This graph depicts the cost structure for a firm in a competitive market.Use the graph to answer the following question(s) . -Refer to Graph 14-1.When marginal revenue is equal to MC<sub>3</sub>, the profit-maximising firm will produce what level of output? A) Q₁ B) Q₂ C) Q₃ D) Q₄

Graph 14-1 This graph depicts the cost structure for a firm in a competitive market.Use the graph to answer the following question(s) . -Refer to Graph 14-1.When marginal revenue is equal to MC<sub>3</sub>, the profit-maximising firm will produce what level of output? A) Q₁ B) Q₂ C) Q₃ D) Q₄

This graph depicts the cost structure for a firm in a competitive market.Use the graph to answer the following question(s) .
-Refer to Graph 14-1.When marginal revenue is equal to MC₃, the profit-maximising firm will produce what level of output?

Quizplus · Accepted Answer

At the level of output where marginal revenue is equal to marginal cost (MC₃), the profit-maximizing firm would produce Q₃, as this is where marginal cost intersects with marginal revenue on the graph. This output level results in the highest profit for the firm as it is producing at the point where marginal cost equals marginal revenue.