-To maximize its profits, the firm described in Table 8-1 should produce ____ unit(s) of output.
A)1
B)2
C)3

Name: -To maximize its profits, the firm described in Table 8-1 should produce ____ unit(s) of output. A)1 B)2 C)3
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Question

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-To maximize its profits, the firm described in Table 8-1 should produce ____ unit(s) of output.
A)1 
B)2 
C)3

Quizplus · Accepted Answer

The firm should produce where MC = MR. At Q=3, MC = MR = $10 which is the highest profit possible. At any other quantity the marginal cost is higher than the marginal revenue, leading to a lower profit.

​ -To Maximize Its Profits, the Firm Described in Table 8-1

-To Maximize Its Profits, the Firm Described in Table 8-1