$$\begin{array} { c r }
\text { Output } & \text { Price } \
1 & \$ 20 \
2 & 18 \
3 & 16 \
4 & 14 \
5 & 12
\end{array}$$
-If the marginal cost were $12,how many units of output would this firm produce?
A)1
B)2
C)3
D)4
E)5

Question

$$\begin{array} { c r } 
\text { Output } & \text { Price } \
1 & \$ 20 \
2 & 18 \
3 & 16 \
4 & 14 \
5 & 12
\end{array}$$
-If the marginal cost were $12,how many units of output would this firm produce?
A)1
B)2
C)3
D)4
E)5

Quizplus · Accepted Answer

Marginal cost is equal to price at the profit-maximizing output level.

Output Price 1$20218316414512\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array} Output 12345​ Price $2018161412​

$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array}$