Exhibit 7-17 Marginal revenue and cost per unit curves In Exhibit 7-17, if the price of the firm's product is $20 per unit, the firm will produce:

Question

Exhibit 7-17  Marginal revenue and cost per unit curves  In Exhibit 7-17, if the price of the firm's product is $20 per unit, the firm will produce:

Quizplus · Accepted Answer

At $20 per unit, the MR curve intersects the MC curve at a quantity of 60 units per day. This is the point where the firm maximizes its profits. Any production level below or above 60 units would result in lower profits. Therefore, the best choice for the firm is to produce 60 units per day.

Exhibit 7-17 Marginal Revenue and Cost Per Unit Curves in Exhibit