The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s) .
Figure 9-18

Refer to Figure 9-18. To maximize profit, the firm should produce an output level of

Question

The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s) .
Figure 9-18

Refer to Figure 9-18. To maximize profit, the firm should produce an output level of

Quizplus · Accepted Answer

To maximize profit, the firm should produce the quantity where marginal cost equals marginal revenue. In this case, that occurs where MC=MR at point ₃.

The Figure Depicts a Firm in a Price-Taker Market