Exhibit 8.2

-Refer to Exhibit 8.2,which shows the total cost and total revenue curves of a firm.The firm maximizes profit at an output represented by _____

Question

Exhibit 8.2
 
-Refer to Exhibit 8.2,which shows the total cost and total revenue curves of a firm.The firm maximizes profit at an output represented by _____

Quizplus · Accepted Answer

A firm maximizes profit where the difference between total revenue and total cost is the greatest, which occurs at the output level where the total revenue curve is furthest from the total cost curve. This is typically represented by the point where the marginal cost equals marginal revenue, which, based on the description, would correspond to point c.

Exhibit 8.2 -Refer to Exhibit 8.2,which Shows the Total Cost and Total