Table 14-9
Suppose that a firm in a competitive market faces the following revenues and costs:
-Refer to Table 14-9. At which quantity of output is marginal revenue equal to marginal cost?
A)3 units
B)5 units
C)7 units
D)9 units

Question

Table 14-9
Suppose that a firm in a competitive market faces the following revenues and costs: 
-Refer to Table 14-9. At which quantity of output is marginal revenue equal to marginal cost?
A)3 units 
B)5 units 
C)7 units 
D)9 units

Quizplus · Accepted Answer

Marginal revenue equals marginal cost at 5 units of output, as this is typically where profit maximization occurs in economic theory.

Table 14-9 Suppose That a Firm in a Competitive Market Faces the Faces