If the market price is $15 and marginal cost is represented by the equation 2 × Q,where Q is in thousands of units,what is the profit-maximizing quantity?

Question

Quizplus · Accepted Answer

To find the profit-maximizing quantity, we need to use the marginal revenue (MR) = price = $15 (since the question mentions that the market price is $15).

Also, we know that profit is maximized at the quantity where MR = MC. So, we need to set the marginal cost equation to 15 and solve for Q:

2Q = 15

Q = 7.5 (in thousands of units)

Therefore, the profit-maximizing quantity is 7,500 units. So, the answer is D.

If the Market Price Is $15 and Marginal Cost Is