Exhibit 7-2 Total revenue and total cost graph

-In Exhibit 7-2,economic profit for the firm is at a maximum when output per week equals:

Question

Exhibit 7-2 Total revenue and total cost graph
 
-In Exhibit 7-2,economic profit for the firm is at a maximum when output per week equals:

Quizplus · Accepted Answer

Economic profit is maximized when marginal revenue equals marginal cost. In the graph, this occurs at the intersection of the marginal cost and marginal revenue curves, which happens at an output level of 250 units. Therefore, the best choice is D.

Exhibit 7-2 Total Revenue and Total Cost Graph