Table 8-A
$$\begin{array} { c c c }
\text { Quantity } & \text { Total Revenue } & \text { Total Cost } \
8 & 95 & 90 \
9 & 105 & 93 \
10 & 114 & 98 \
11 & 122 & 105 \
12 & 129 & 114
\end{array}$$
-Refer to Table 8-A.Marginal revenue at the profit-maximizing level of output is equal to:
A)$5.
B)$7.
C)$8.
D)$9.
E)$10.

Question

Table 8-A
 $$\begin{array} { c c c } 
\text { Quantity } & \text { Total Revenue } & \text { Total Cost } \
8 & 95 & 90 \
9 & 105 & 93 \
10 & 114 & 98 \
11 & 122 & 105 \
12 & 129 & 114
\end{array}$$
-Refer to Table 8-A.Marginal revenue at the profit-maximizing level of output is equal to:
A)$5.
B)$7.
C)$8.
D)$9.
E)$10.

Quizplus · Accepted Answer

The profit-maximizing level of output is where marginal cost equals marginal revenue. From quantity 10 to 11, marginal revenue is $8 (122-114), and marginal cost is $7 (105-98), indicating that the profit-maximizing output is at quantity 11, where marginal revenue is $8.

Table 8-A -Refer to Table 8-A