-The profit-maximizing price for the firm in Figure 11-3 is
A)$165
B)$150
C)less than $150,but more than $100
D)irrelevant because the firm should shut down immediately
E)less than $100

Question

-The profit-maximizing price for the firm in Figure 11-3 is
A)$165 
B)$150 
C)less than $150,but more than $100 
D)irrelevant because the firm should shut down immediately 
E)less than $100

Quizplus · Accepted Answer

The profit-maximizing price is where marginal cost equals marginal revenue. Without the figure, we assume $150 is the price where this condition is met, as it is a common price point in such scenarios.

-The Profit-Maximizing Price for the Firm in Figure 11-3 Is