Exhibit 17.1

-Refer to Exhibit 17.1,which shows a market for electricity.The equilibrium level of output for the firm is _____
A)0 kilowatt-hours.
B)50 million kilowatt-hours.
C)75 million kilowatt-hours.
D)between 0 and 50 million kilowatt-hours.
E)between 50 and 75 million kilowatt-hours.

Question

Exhibit 17.1
 
-Refer to Exhibit 17.1,which shows a market for electricity.The equilibrium level of output for the firm is _____
A)0 kilowatt-hours. 
B)50 million kilowatt-hours. 
C)75 million kilowatt-hours. 
D)between 0 and 50 million kilowatt-hours. 
E)between 50 and 75 million kilowatt-hours.

Quizplus · Accepted Answer

The equilibrium level of output for the firm is the point where the marginal cost curve intersects the marginal revenue curve, which is at a quantity of 75 million kilowatt-hours in this exhibit. At this level of output, the firm is maximizing its profit.

Exhibit 17.1 -Refer to Exhibit 17.1,which Shows a Market for Electricity.The Equilibrium