-Refer to Figure 10.3.If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price,the firm's profit will be
A) $80.
B) $84.
C) $88.
D) $132.

Question

-Refer to Figure 10.3.If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price,the firm's profit will be
A) $80. 
B) $84. 
C) $88. 
D) $132.

Quizplus · Accepted Answer

The profit-maximizing quantity is where marginal cost (MC) equals marginal revenue (MR). At this point, the difference between total revenue (TR) and total cost (TC) is the greatest, which represents the firm's profit. Without seeing Figure 10.3, the correct answer cannot be determined through calculation or visual analysis. However, based on standard economic theory, the profit is maximized where MC = MR, and the profit is the area between the price level and the average total cost (ATC) curve, multiplied by the quantity sold.