Figure 11-8
Figure 11-8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 11-8.What is the profit-maximizing output level?
A) 22 cases
B) 24 cases
C) 30 cases
D) 38 cases

Question

Figure 11-8
  Figure 11-8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 11-8.What is the profit-maximizing output level?
A) 22 cases 
B) 24 cases 
C) 30 cases 
D) 38 cases

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal revenue equals marginal cost. From the graph, we can see that this occurs at an output level of 22 cases.

Figure 11-8 Figure 11-8 Shows Cost and Demand Curves for Curves