Figure 10.8 Figure 10.8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 10.8.The profit-maximising output level is
A)22 cases
B)24 cases
C)30 cases
D)38 cases

Question

Figure 10.8  Figure 10.8 shows cost and demand curves for a monopolistically competitive producer of iced tea.
-Refer to Figure 10.8.The profit-maximising output level is
A)22 cases 
B)24 cases 
C)30 cases 
D)38 cases

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal cost equals marginal revenue. In Figure 10.8, this occurs at an output level of 22 cases.

Figure 108 Figure 10