Figure 7-8
-Refer to Figure 7-8.The total cost at the profit-maximising output level equals
A) $4800.
B) $3300.
C) $2500.
D) $1800.

Question

Figure 7-8 
-Refer to Figure 7-8.The total cost at the profit-maximising output level equals
A) $4800. 
B) $3300. 
C) $2500. 
D) $1800.

Quizplus · Accepted Answer

The profit-maximising output level is where marginal revenue equals marginal cost. In this case, it is at a quantity of 15. At this output level, the total cost is $3300 (the point where the MC curve intersects the ATC curve). Therefore, the best choice is B.

Figure 7-8 -Refer to Figure 7-8.The Total Cost at the Profit-Maximising Output