-Use the above figure. The profit-maximizing output and price is
A) 600 and $16, respectively.
B) 600 and $10, respectively.
C) 600 and $8, respectively.
D) 800 and $10, respectively.

Question

-Use the above figure. The profit-maximizing output and price is
A) 600 and $16, respectively. 
B) 600 and $10, respectively. 
C) 600 and $8, respectively. 
D) 800 and $10, respectively.

Quizplus · Accepted Answer

The profit-maximizing output and price are determined at the point where marginal cost (MC) equals marginal revenue (MR). The choice that corresponds to this condition, based on the information that would be provided in the figure (not visible here), is typically the one where the quantity produced (output) and the price at which the product is sold align with the intersection of the MC and MR curves. Without the figure, we rely on common economic principles for this explanation.

-Use the Above Figure