Remaining Time: 1 hour, 11 minutes, 00 seconds. \\ Question Completion Status: T

Question

Remaining Time: 1 hour, 11 minutes, 00 seconds. Question Completion Status: Table 14-9 Suppose that a fim in a competitive market faces the following revenues and costs Quantity Total Revenue $0 $9 $18 $27 $36 $45 $54 Total Cost $10 $14 $19 $25 $32 S40 $49 $59 $70 $82 6 $72 581 8 Refer to Table 14-9 In order to maximize proft, the firm will produce a level of output where marginal revenue is equal to Click Save and Submit to save and submit. Click Save All Answers to save all ansuvers Save All Answers

Explanation / Answer

Profit is maximised at the point where MR = MC

At 6 units of output,

MR = 54-45 = $9

MC = 49-40 = $9

Thus, at profit maximizing unit of output, output produced is 6 units and MR = MC = $9

Thus correct option is $9

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