-In the above figure, if d3 is the relevant demand curve for this firm, then which level of output will maximize this firm's profits or minimize its losses?

Question

Quizplus · Accepted Answer

When d3 is the relevant demand curve, the level of output that will maximize this firm's profits or minimize its losses is at the point where the marginal cost curve intersects the demand curve, which is at point C. This is because profit maximization occurs where marginal cost equals marginal revenue, and for a perfectly competitive firm, the demand curve represents the marginal revenue curve.

-In the Above Figure, If D3 Is the Relevant Demand