Use the figure to answer the following question(s).
Figure 9-7

When the market price in Figure 9-7 is $4, the firm's maximum weekly profit will be approximately

Question

Use the figure to answer the following question(s).
Figure 9-7

When the market price in Figure 9-7 is $4, the firm's maximum weekly profit will be approximately

Quizplus · Accepted Answer

At a price of $4, the firm will produce a quantity of 1,000 units, which can be read off from the x-axis of the figure. The marginal cost and marginal revenue curves intersect at this quantity, which means the firm is maximizing its profit. The profit at this quantity is approximately equal to (4 - 2) x 1,000 = $2,000 per week. Therefore, the firm's maximum weekly profit will be approximately 3 x $2,000 = $6,000.

Use the Figure to Answer the Following Question(s)