Refer to the accompanying figure.Point ________ corresponds to the profit-maximizing quantity that a competitive firm would produce.

Question

Quizplus · Accepted Answer

The profit-maximizing quantity that a competitive firm would produce is where marginal cost (MC) intersects with marginal revenue (MR), which is at point C in the accompanying figure. This is because at this point, the additional cost of producing one more unit (MC) is equal to the additional revenue gained from selling one more unit (MR), maximizing profits for the firm. Therefore, point C corresponds to the profit-maximizing quantity.

Refer to the Accompanying Figure