The following graph shows the marginal revenue (MR) and marginal cost (MC) curves of an imperfectly competitive firm.Figure 9.2

-Refer to Figure 9.2. If the current production level is 90 and the firm wishes to maximize profit, it should:
A)continue to produce at the current level.
B)decrease the quantity produced to 75.
C)decrease the quantity produced to 50.
D)decrease the quantity produced to 35.
E)increase production until MR = MC.

Question

The following graph shows the marginal revenue (MR) and marginal cost (MC) curves of an imperfectly competitive firm.Figure 9.2
​
 
-Refer to Figure 9.2. If the current production level is 90 and the firm wishes to maximize profit, it should:
A)continue to produce at the current level. 
B)decrease the quantity produced to 75. 
C)decrease the quantity produced to 50. 
D)decrease the quantity produced to 35. 
E)increase production until MR = MC.

Quizplus · Accepted Answer

The Answer of The following graph shows the marginal revenue (MR) and marginal cost (MC) curves of an imperfectly competitive firm.Figure 9.2
​
 
-Refer to Figure 9.2. If the current production level is 90 and the firm wishes to maximize profit, it should:
A)continue to produce at the current level. 
B)decrease the quantity produced to 75. 
C)decrease the quantity produced to 50. 
D)decrease the quantity produced to 35. 
E)increase production until MR = MC.

The Following Graph Shows the Marginal Revenue (MR) and Marginal