Narrbegin Exhibit 7.1 Total revenue and total cost graph
-In Exhibit 7.1, the firm will produce at which level of output:
A) zero.
B)150.
C)350.
D) 250.

Question

Narrbegin Exhibit 7.1 Total revenue and total cost graph  
-In Exhibit 7.1, the firm will produce at which level of output:
A) zero. 
B)150. 
C)350. 
D) 250.

Quizplus · Accepted Answer

The firm will produce at the level of output where marginal cost (MC) equals marginal revenue (MR), assuming this is the profit-maximizing condition in a perfectly competitive market or under certain conditions in imperfect competition. Without specific details from Exhibit 7.1, the correct answer cannot be determined from the information given. However, typically, the choice would be based on data showing where MC = MR, which is a standard economic principle for determining the optimal level of output for a firm.