-To maximize its profit or minimize its loss, the firm represented in this figure should sell:
A) 1,500 units of output.
B) 3,300 units of output.
C) 5,000 units of output.
D) 7,000 units of output.

Question

-To maximize its profit or minimize its loss, the firm represented in this figure should sell:
A) 1,500 units of output. 
B) 3,300 units of output. 
C) 5,000 units of output. 
D) 7,000 units of output.

Quizplus · Accepted Answer

The firm should produce where marginal cost equals marginal revenue to maximize profit or minimize loss. This typically occurs at the output level where these two curves intersect, which is often around the midpoint of the production capacity, such as 5,000 units.

-To Maximize Its Profit or Minimize Its Loss, the Firm