In Figure 24.2, total profit at the profit-maximizing rate of output is
A)$16.00.
B)$5.50.
C)$6.00.
D)$22.00.

Question

In Figure 24.2, total profit at the profit-maximizing rate of output is
A)$16.00. 
B)$5.50. 
C)$6.00. 
D)$22.00.

Quizplus · Accepted Answer

In Figure 24.2, the profit-maximizing rate of output occurs where marginal revenue equals marginal cost, which is at a quantity of 4 units. At this quantity, the total revenue is $24.00 and the total cost is $18.00, resulting in a total profit of $6.00. Therefore, the correct answer is C) $6.00.