Asked by Kanidra Stringer on Jun 14, 2024
Verified
This firm's most profitable output is at
A) 40.
B) 50.
C) 60.
D) 70.
Profitable Output
The level of production at which a company maximizes its profits under given market conditions.
- Understand the impact of cost curves and market price on output decisions.
Verified Answer
SA
Sanchita AgarwalJun 19, 2024
Final Answer :
C
Explanation :
A firm's most profitable output is determined at the level where marginal cost (MC) equals marginal revenue (MR), assuming MR > MC for outputs below this level and MR < MC for outputs above. Without specific numbers for costs and revenues, we can't calculate the exact output level. However, assuming the question implies that 60 is the output level where MC = MR based on given options, 60 would be the correct answer.
Learning Objectives
- Understand the impact of cost curves and market price on output decisions.