Figure 13-13

-Refer to Figure 13-13.What is the profit-maximizing output level?
A)Q₁ units
B)Q₂ units
C)Q₃ units
D)Q₄ units

Question

Figure 13-13
 
-Refer to Figure 13-13.What is the profit-maximizing output level?
A)Q₁ units 
B)Q₂ units 
C)Q₃ units 
D)Q₄ units

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal revenue equals marginal cost, which is at point Q4 in the graph. At this output level, the firm can earn the highest profit as the difference between total revenue and total cost is the greatest.

Figure 13-13 -Refer to Figure 13-13.What Is the Profit-Maximizing Output Level