The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3
-In Table 7.3,profit maximization is achieved at a production rate of:
A) 1 submarine per year.
B) 3 submarines per year.
C) 4 submarines per year.
D) 5 submarines per year.

Question

The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3 
-In Table 7.3,profit maximization is achieved at a production rate of:
A) 1 submarine per year. 
B) 3 submarines per year. 
C) 4 submarines per year. 
D) 5 submarines per year.

Quizplus · Accepted Answer

Profit maximization occurs where marginal cost equals marginal revenue, assuming Table 7.3 shows this condition met at 3 submarines per year.

The Following Table Shows Some Costs and Prices Faced by a Company