Figure 7.8
-Refer to Figure 7.8.What is total cost at the profit-maximising output level?

Question

Figure 7.8 
-Refer to Figure 7.8.What is total cost at the profit-maximising output level?

Quizplus · Accepted Answer

At the profit-maximising output level, the marginal cost (MC) is equal to the marginal revenue (MR), which is $22. The corresponding level of output is 150 units, as shown on the graph. The total cost at this level of output is $3300, which is the sum of fixed costs ($2000) and variable costs ($1300). Therefore, choice B is the best choice.

Figure 7.8 -Refer to Figure 7.8.What Is Total Cost at the Profit-Maximising