-This profit-maximizing firm charges a price of

Question

Quizplus · Accepted Answer

A profit-maximizing firm will set its price where marginal cost (MC) equals marginal revenue (MR), and then produce the quantity that consumers demand at that price. The point where MC intersects MR determines the quantity to produce, and the demand curve at that quantity determines the price. Since the specific graph or details are not provided in the question, the explanation is based on standard economic theory. The correct answer typically involves looking at a graph where the demand curve, marginal cost curve, and marginal revenue curve are depicted. The price is found by moving up from the quantity produced (where MC=MR) to the demand curve and then over to the price axis. Without a graph, this explanation assumes familiarity with the concept.

-This Profit-Maximizing Firm Charges a Price of