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.If Jason maximizes his profit he will produce the output level indicated by point ________ and his average profit will equal ________.

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.If Jason maximizes his profit he will produce the output level indicated by point ________ and his average profit will equal ________.

Quizplus · Accepted Answer

Jason maximizes his profit by producing at the output level where marginal cost equals marginal revenue. This is indicated by point d on the graph. At this point, Jason's average profit is equal to $3 minus ATC at point d.

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