-Figure 8-4 indicates data for the total cost curve and the demand curve facing Jonathan's Riding Mower Shop.The quantities indicated are potential daily sales.Jonathan's maximum profit is
A)$2,150
B)$3,600
C)$550
D)$2,050
E)$1,750

Question

-Figure 8-4 indicates data for the total cost curve and the demand curve facing Jonathan's Riding Mower Shop.The quantities indicated are potential daily sales.Jonathan's maximum profit is
A)$2,150 
B)$3,600 
C)$550 
D)$2,050 
E)$1,750

Quizplus · Accepted Answer

Jonathan's maximum profit is calculated by finding the difference between total revenue and total cost at the quantity where marginal cost equals marginal revenue. Based on the given options, $2,150 is the correct maximum profit.

-Figure 8-4 Indicates Data for the Total Cost Curve and the Demand