Figure 7.1:
-In Figure 7.1,if this industry is competitive,the profit-maximizing level of output is:
A) 2 units.
B) 3 units.
C) 4 units.
D) Between 3 and 4 units.

Question

Figure 7.1:  
-In Figure 7.1,if this industry is competitive,the profit-maximizing level of output is:
A) 2 units. 
B) 3 units. 
C) 4 units. 
D) Between 3 and 4 units.

Quizplus · Accepted Answer

In a competitive industry, the profit-maximizing level of output is where marginal cost (MC) equals marginal revenue (MR). Without seeing Figure 7.1, the exact point cannot be determined, but the answer indicating a range "Between 3 and 4 units" suggests that the MC equals MR within this range, which aligns with the principle of profit maximization in competitive markets.