Figure 12-10

-Refer to Figure 12-10.At the profit-maximizing output level, the firm earns

Name: Figure 12-10 -Refer to Figure 12-10.At the profit-maximizing output level, the firm earns
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Question

Figure 12-10
 
-Refer to Figure 12-10.At the profit-maximizing output level, the firm earns

Quizplus · Accepted Answer

At the profit-maximizing output level, MC=MR, which occurs at an output of 5 units in this graph. At this output level, the price is $900, and the average total cost is $300. Therefore, the profit per unit is $600 (=$900-$300), and the total profit is $2,700 (=$600x5).

Figure 12-10 -Refer to Figure 12-10.At the Profit-Maximizing Output Level, the Firm