In Figure 24.2, total profit at the profit-maximizing rate of output is
A) CDLK.
B) CDHG.
C) ABDLK.
D) GHLK.

Name: In Figure 24.2, total profit at the profit-maximizing rate of output is A) CDLK. B) CDHG. C) ABDLK. D) GHLK.
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Question

In Figure 24.2, total profit at the profit-maximizing rate of output is
A) CDLK. 
B) CDHG. 
C) ABDLK. 
D) GHLK.

Quizplus · Accepted Answer

The profit-maximizing rate of output is where MR=MC. In this case, it occurs where output is Q2. At Q2, total profit is equal to the rectangle CDHG. Therefore, the correct answer is B.