-This firm would maximize its profit by producing:
A) 1 unit of output.
B) 2 units of output.
C) 3 units of output.
D) 4 units of output.

Name: -This firm would maximize its profit by producing: A) 1 unit of output. B) 2 units of output. C) 3 units of output. D) 4 units of output.
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Question

-This firm would maximize its profit by producing:
A) 1 unit of output. 
B) 2 units of output. 
C) 3 units of output. 
D) 4 units of output.

Quizplus · Accepted Answer

A firm maximizes profit by producing at the output level where marginal cost equals marginal revenue. In this case, marginal cost is equal to marginal revenue at 2 units of output.

-This Firm Would Maximize Its Profit by Producing