Table 11.10

-Refer to Table 11.10.The firm maximizes any profit (or minimizes any loss)by hiring a resource at _____
A)less than Q.
B)more than Q'.
C)between P and Q'.
D)Q.
E)Q'.

Question

Table 11.10
 
-Refer to Table 11.10.The firm maximizes any profit (or minimizes any loss)by hiring a resource at _____
A)less than Q. 
B)more than Q'. 
C)between P and Q'. 
D)Q. 
E)Q'.

Quizplus · Accepted Answer

The firm maximizes any profit (or minimizes any loss) by hiring a resource at Q, which is the quantity where MR = MC. At this quantity, the firm is producing the level of output where the marginal revenue from the last unit of output is exactly equal to the marginal cost of producing that unit. Any quantity more or less than Q would result in lower profit or higher loss for the firm.

Table 11.10 -Refer to Table 11.10.The Firm Maximizes Any Profit (Or Minimizes