Refer to the information provided in Figure 13.5 below to answer the questions that follow. Figure 13.5
-Refer to Figure 13.5. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be
A) $0.
B) $88.
C) $154.
D) $242.

Question

Refer to the information provided in Figure 13.5 below to answer the questions that follow.  Figure 13.5
-Refer to Figure 13.5. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be
A) $0. 
B) $88. 
C) $154. 
D) $242.

Quizplus · Accepted Answer

The firm is producing at the profit-maximizing quantity, where marginal cost equals marginal revenue. The profit-maximizing price is the price at which the quantity demanded equals the profit-maximizing quantity. At this point, the firm's profit is equal to the difference between total revenue and total cost, which is $154.

Refer to the Information Provided in Figure 13