TABLE 9-2

-Refer to Table 9-2. What is the profit-maximizing level of output?

Question

TABLE 9-2
 
-Refer to Table 9-2. What is the profit-maximizing level of output?

Quizplus · Accepted Answer

The profit-maximizing level of output is where marginal revenue (MR) equals marginal cost (MC). At 11 units of output, MR is $70 and MC is $70, which means the company is earning maximum profit per unit sold. At any level below or above 11 units, the marginal cost or marginal revenue is higher or lower than $70, respectively, resulting in lower profit. Therefore, the best choice is C) 11 units.

TABLE 9-2 -Refer to Table 9-2. What Is the Profit-Maximizing Level of the Profit-Maximizing