Refer to the figure below.During high-peak times,what price-quantity combination should the firm charge to maximize profit? A) P₁ and Q₃ B) P₂ and Q₃ C) P₄ and Q₃ D) P₁ and Q₂

Question

Quizplus · Accepted Answer

During high-peak times, the profit is maximized where marginal cost (MC) intersects with marginal revenue (MR). This occurs at price P₄ and quantity Q₃, which is at the intersection between MC and MR on the graph.

Refer to the Figure Below