Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. Figure 8.9
-Refer to Figure 8.9. This farmer's ________ level of output is 500 units of output.
A) profit-maximizing
B) loss-minimizing
C) break-even
D) shut-down

Question

Refer to the information provided in Figure 8.9 below to answer the question(s) that follow.  Figure 8.9
-Refer to Figure 8.9. This farmer's ________ level of output is 500 units of output.
A) profit-maximizing 
B) loss-minimizing 
C) break-even 
D) shut-down

Quizplus · Accepted Answer

The profit-maximizing level of output for a farmer (or any producer) is determined by the point where marginal cost (MC) equals marginal revenue (MR). Without seeing Figure 8.9, we can deduce that if the question specifies a certain level of output (in this case, 500 units) as being significant, and it is related to the farmer's economic decision-making, it most likely refers to the profit-maximizing output. This is a fundamental principle in microeconomics.

Refer to the Information Provided in Figure 8