If this firm produced at its most efficient output level it would produce _______ units.

Question

Quizplus · Accepted Answer

The firm's most efficient output level occurs where marginal cost (MC) equals marginal revenue (MR), which is at 90 units. At this level of production, the firm is maximizing its profits. If it were to produce more, its MC would exceed its MR, leading to a decrease in profits. If it were to produce fewer units, it would not be maximizing its output and profits would also be lower. Therefore, the best choice is C)90.

If This Firm Produced at Its Most Efficient Output Level