Given the accompanying table, what is the short-run profit-maximizing level of output for the firm? $\begin{array} { | c | c | c| }
\hline \text { Output } & \text { Total Reverue } & \text { Total Cost } \
\hline 1 & \$ 4 & 2 \
\hline 2 & 8 & 3 \
\hline 3 & 12 & 6 \
\hline 4 & 16 & 9 \
\hline 5 & 20 & 14 \
\hline
\end{array}$
A) 2 units
B) 3 units
C) 4 units
D) 5 units

Question

Given the accompanying table, what is the short-run profit-maximizing level of output for the firm? $\begin{array} { | c | c | c| } 
\hline \text { Output } & \text { Total Reverue } & \text { Total Cost } \
\hline 1 & \$ 4 & 2 \
\hline 2 & 8 & 3 \
\hline 3 & 12 & 6 \
\hline 4 & 16 & 9 \
\hline 5 & 20 & 14 \
\hline
\end{array}$
A) 2 units
B) 3 units
C) 4 units
D) 5 units

Quizplus · Accepted Answer

The profit is maximized where the difference between total revenue and total cost is the greatest. At 4 units, the profit is $16 - $9 = $7, which is the highest among the options.

Given the Accompanying Table, What Is the Short-Run Profit-Maximizing Level