The marginal revenue and marginal cost at various levels of output is listed below: Output
Marginal Revenue
($)
Marginal Cost
($)
100
16
14
150
15
12
200
12
10
250
9
9
At what level of output is profit maximized?
A)100 units
B)150 units
C)200 units
D)250 units

Question

Quizplus · Accepted Answer

Profit is maximized when marginal revenue equals marginal cost, which occurs at 250 units where both are $9.

The Marginal Revenue and Marginal Cost at Various Levels of Output