Refer to the above graph.The level of output at which this firm will produce is:

Question

Quizplus · Accepted Answer

The firm will produce at the level of output where marginal cost (MC) equals marginal revenue (MR), which is where the MC curve intersects the MR curve. In this graph, that point is at output level 0C. Any other output level would result in either higher costs than revenue (to the left of 0C) or lower revenue than costs (to the right of 0C), making it inefficient for the firm to produce at those levels.

Refer to the Above Graph