Refer to the information provided in Figure 9.7 below to answer the questions that follow. Figure 9.7
-Refer to Figure 9.7. If demand for wheat is D3, then a profit maximizing firm will produce ________ units and earn ________.
A) 15; positive profits
B) 9; positive profits
C) 12; negative profits
D) 13; exactly a normal return

Question

Refer to the information provided in Figure 9.7 below to answer the questions that follow.  Figure 9.7
-Refer to Figure 9.7. If demand for wheat is D3, then a profit maximizing firm will produce ________ units and earn ________.
A) 15; positive profits 
B) 9; positive profits 
C) 12; negative profits 
D) 13; exactly a normal return

Quizplus · Accepted Answer

The profit-maximizing firm will produce at the point where marginal cost equals marginal revenue. At this point, the firm will produce 15 units and earn positive profits.

Refer to the Information Provided in Figure 9