Figure 14-5
-Refer to Figure 14-5.When market price is P3,a profit-maximizing firm's total revenue

Question

Figure 14-5 
-Refer to Figure 14-5.When market price is P3,a profit-maximizing firm's total revenue

Quizplus · Accepted Answer

When market price is P3, the firm will produce Q2 output, which is where marginal cost equals marginal revenue. This output level corresponds to point B on the graph. Total revenue at this output level is represented by the area P3Q2, which is the rectangle formed by the market price and the quantity produced.

Figure 14-5 -Refer to Figure 14-5.When Market Price Is P3,a Profit-Maximizing Firm's