When the firm in the figure above maximizes its profit,it makes an economic profit of
A) $3,125.
B) $6,250.
C) $9,375.
D) $5,625.
E) None of the above answers is correct because the firm incurs an economic loss.

Question

Quizplus · Accepted Answer

The correct answer is $6,250. This is determined by calculating the difference between total revenue and total cost at the profit-maximizing output level, which is typically where marginal cost equals marginal revenue.

When the Firm in the Figure Above Maximizes Its Profit,it