The following question are based on the following graph:

-For this firm profits are maximized at an output rate of
A) 0Q.
B) 0P.
C) 0W.
D) 0U.
E) 0V.

Name: The following question are based on the following graph: -For this firm profits are maximized at an output rate of A) 0Q. B) 0P. C) 0W. D) 0U. E) 0V.
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Question

The following question are based on the following graph:
 
-For this firm profits are maximized at an output rate of
A) 0Q. 
B) 0P. 
C) 0W. 
D) 0U. 
E) 0V.

Quizplus · Accepted Answer

The profit-maximizing output rate is where marginal revenue equals marginal cost. In this graph, that occurs at point P. Therefore, the firm's profits are maximized at an output rate of 0P.

The Following Question Are Based on the Following Graph