-According to this table, to maximize profit this firm should produce and sell:
A) 1 unit of output.
B) 2 units of output.
C) 3 units of output.
D) 4 units of output.

Question

-According to this table, to maximize profit this firm should produce and sell:
A) 1 unit of output. 
B) 2 units of output. 
C) 3 units of output. 
D) 4 units of output.

Quizplus · Accepted Answer

Profit is maximized when marginal revenue equals marginal cost. In this case, marginal revenue is $10 and marginal cost is $6. Therefore, the firm should produce and sell 2 units of output.

-According to This Table, to Maximize Profit This Firm Should