Given the accompanying diagram, which level of output should the entrepreneur choose to maximize profits?
A)either X₁ or X₃ since the profit level will be the same
B)X₃ since any increase in output will reduce profits
C)X₁ since any decrease in output will reduce profits
D)X₂ since at this level the difference between MR and MC is maximized

Question

Given the accompanying diagram, which level of output should the entrepreneur choose to maximize profits?
A)either X₁ or X₃ since the profit level will be the same 
B)X₃ since any increase in output will reduce profits 
C)X₁ since any decrease in output will reduce profits 
D)X₂ since at this level the difference between MR and MC is maximized

Quizplus · Accepted Answer

The Answer of  Given the accompanying diagram, which level of output should the entrepreneur choose to maximize profits?
A)either X₁ or X₃ since the profit level will be the same 
B)X₃ since any increase in output will reduce profits 
C)X₁ since any decrease in output will reduce profits 
D)X₂ since at this level the difference between MR and MC is maximized

Given the Accompanying Diagram, Which Level of Output Should the Entrepreneur