Figure 9.8 Figure 9.8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 9.8.The profit-maximising output level is ______.

Question

Figure 9.8  Figure 9.8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 9.8.The profit-maximising output level is ______.

Quizplus · Accepted Answer

The profit-maximising output level is where marginal cost equals marginal revenue. From the graph, we can see that this occurs at an output level of 22 cases.

Figure 98 Figure 9