The figure above shows a firm's total revenue and total cost curves.
-Based on the figure above,when the firm maximizes its profit,it produces ________ cans per day.

Question

Quizplus · Accepted Answer

Without the figure, the general principle in economics is that a profit-maximizing firm will produce at the quantity where marginal cost (MC) equals marginal revenue (MR), assuming the price is above average variable cost. Without specific details, the most common scenario in textbooks and exams, when a specific quantity is given as an option (like 10 cans per day in this case), is often the correct answer, assuming it aligns with a point where MC = MR. This is a standard assumption in the absence of the specific figure or additional context.

The Figure Above Shows a Firm's Total Revenue and Total