Table 11-4
$\begin{array}{|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { Sold }
\end{array} & \text { Price } & \begin{array}{c}
\text { Total } \
\text { Revenue }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Revenue }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \text { Profit } \
\hline 0 & \$ 10 & \$ 0 & \cdots &\$ 2& \ldots & -\$ 2 \
\hline 1 & 9 & 9 & & 82 & \
\hline 2 & 8 & 16 & & 13 & & \
\hline 3 & 7 & 21 & & 17 & & \
\hline 4 & 6 & 24 & & 20 & & \
\hline 5 & 5 & 25 & & 22 & & \
\hline 6 & 4 & 24 & & 26 & & \
\hline
\end{array}$ Table 11-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to universities and private research laboratories.
-Refer to Table 11-4.Victoria's profit-maximizing output is where
A) total profit equals $3.
B) marginal revenue and marginal cost both equal $4.
C) marginal revenue and marginal cost both equal $3.
D) marginal cost is at its minimum value.

Question

Table 11-4
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { Sold }
\end{array} & \text { Price } & \begin{array}{c}
\text { Total } \
\text { Revenue }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Revenue }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Cost }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Cost }
\end{array} & \text { Profit } \
\hline 0 & \$ 10 & \$ 0 & \cdots &\$ 2& \ldots & -\$ 2 \
\hline 1 & 9 & 9 & & 82 & \
\hline 2 & 8 & 16 & & 13 & & \
\hline 3 & 7 & 21 & & 17 & & \
\hline 4 & 6 & 24 & & 20 & & \
\hline 5 & 5 & 25 & & 22 & & \
\hline 6 & 4 & 24 & & 26 & & \
\hline
\end{array}$ Table 11-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to universities and private research laboratories.
-Refer to Table 11-4.Victoria's profit-maximizing output is where
A) total profit equals $3.
B) marginal revenue and marginal cost both equal $4.
C) marginal revenue and marginal cost both equal $3.
D) marginal cost is at its minimum value.

Quizplus · Accepted Answer

To maximize profit, a firm should produce where marginal revenue equals marginal cost. From the table, we can see that the profit-maximizing output is where marginal revenue and marginal cost both equal $3, which occurs at a quantity sold of 4. At this output level, the total revenue is $24, total cost is $20, and profit is $4. Therefore, the answer is C.

Table 11-4 Table 11-4 Lists Estimated Revenues and Costs (Per Week) for }\end{array}

Table 11-4 Table 11-4 Lists Estimated Revenues and Costs (Per Week) for }
\end{array}