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.The profit-maximizing level of output:
A)is equal to 9 units of output.
B)is equal to 10 units of output.
C)is equal to 11 units of output.
D)is equal to 12 units of output.
E)cannot be determined from the information provided.

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.The profit-maximizing level of output:
A)is equal to 9 units of output.
B)is equal to 10 units of output.
C)is equal to 11 units of output.
D)is equal to 12 units of output.
E)cannot be determined from the information provided.

Quizplus · Accepted Answer

The profit-maximizing level of output is where the difference between total revenue and total cost is the greatest. At 11 units, the profit is $122 - $105 = $17, which is the highest profit compared to other quantities.

Table 8-A -Refer to Table 8-A