At what level of output does marginal cost equal marginal revenue?

$\begin{array} { c c c }
\text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs } \
0 & 0 & 0 \
10 & 120 & 40 \
20 & 200 & 100 \
30 & 270 & 170 \
40 & 310 & 260 \
50 & 330 & 370 \
\end{array}$
A) 10
B) 20
C) 30
D) 40

Question

At what level of output does marginal cost equal marginal revenue?

$\begin{array} { c c c } 
 \text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs  } \
 0 & 0 & 0 \
 10 & 120 & 40 \
 20 & 200 & 100 \
 30 & 270 & 170 \
 40 & 310 & 260 \
 50 & 330 & 370 \
\end{array}$
A) 10
B) 20
C) 30
D) 40

Quizplus · Accepted Answer

To find the level of output where marginal cost equals marginal revenue, we need to calculate both marginal cost and marginal revenue at each level of output.

Using the table, we can first calculate total revenue (TR) and total cost (TC) for each level of output. We can then use these to calculate marginal revenue (MR) and marginal cost (MC) as follows:

MR = change in TR / change in output 
MC = change in TC / change in output

$\begin{array} { c c c c c} 
 \text { Units Produced } & \text { TR } & \text { TC } & \text { MR } & \text { MC } \
 0 & 0 & 0 & - & - \
 10 & 120 & 40 & 12 & 4 \
 20 & 200 & 100 & 8 & 6 \
 30 & 270 & 170 & 6 & 7 \
 40 & 310 & 260 & 4 & 9 \
 50 & 330 & 370 & 2 & 22 \
\end{array}$

We can see that MC is equal to MR at an output of 30 units. Therefore, the best choice is C) 30.

At What Level of Output Does Marginal Cost Equal Marginal