Figure: Profit Maximizing Output Use the figure. The profit-maximizing output for this firm is:
A)40.
B)3.
C)6.
D)9.

Name: Figure: Profit Maximizing Output Use the figure. The profit-maximizing output for this firm is: A)40. B)3. C)6. D)9.
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Question

Figure: Profit Maximizing Output  Use the figure. The profit-maximizing output for this firm is:
A)40. 
B)3. 
C)6. 
D)9.

Quizplus · Accepted Answer

The profit-maximizing output is where marginal revenue equals marginal cost. In the given figure, MR intersects MC at point Q which represents an output level of 6 where the total profit is maximized. Therefore, the answer is C) 6.

Figure: Profit Maximizing Output Use the Figure