Figure 9-6
Figure 9-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples.
-Refer to Figure 9-6.To maximize his profit,Jason should produce the level of output indicated by point

Question

Figure 9-6
  Figure 9-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples.
-Refer to Figure 9-6.To maximize his profit,Jason should produce the level of output indicated by point

Quizplus · Accepted Answer

To maximize his profit, Jason should produce the level of output where marginal cost (MC) equals marginal revenue (MR), which is point D in the graph. At this level of output, he can charge a price equal to the demand curve and produce at a level where the cost of producing the additional unit of output (MC) is equal to the additional revenue generated by selling that unit (MR). This will maximize his profit because any level of output below or above point D will result in a lower profit. Thus, the correct choice is D.

Figure 9-6 Figure 9-6 Shows the Demand, Marginal Cost (MC)