-Use the above figure. The profit-maximizing or loss minimizing output and price will be
A) Q1 and P2.
B) Q2 and P3.
C) Q3 and P3.
D) Q4 and P1.

Question

-Use the above figure. The profit-maximizing or loss minimizing output and price will be
A) Q1 and P2. 
B) Q2 and P3. 
C) Q3 and P3. 
D) Q4 and P1.

Quizplus · Accepted Answer

The profit-maximizing or loss-minimizing output and price are determined at the point where marginal cost (MC) equals marginal revenue (MR). This typically occurs at Q2 and P3, where the firm's MC curve intersects the MR curve from the demand.

-Use the Above Figure