Question 11 Reter to Exhibit 23-2. What quantity ot output does the profit-maxim

Question

Question 11 Reter to Exhibit 23-2. What quantity ot output does the profit-maximizing (or loss-minimizing) firm produce: Exhibit 23-2 HC d Ma Q 2 Qs Q4 Quantity O 0 O A. Q1, where marginal cost is less than marginal revenue. B. Q3, where marginal cost is greater than marginal revenue. C. Q2, where marginal cost is equal to marginal revenue. D. 04. which maximizes the difference between marginal cost and marginal revenue. Continue Copyright Notices Terms of UsePrivacy Notice Security Notice Accessibility

Explanation / Answer

Profit maximizing level of output is given by the point on the demand curve where the Marginal Revenue = Marginal Cost ( MR = MC ) . In this diagram the MC curve cuts the MR curve at Q2 .

Answer : Option : c) Q2

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