Remaining Time: 1 hour, 10 minutes, 31 seconds. Question Completion Status: Tabl

Question

Remaining Time: 1 hour, 10 minutes, 31 seconds. Question Completion Status: Table 14-9 Suppose that a firm in a competitive market faces the following revenues and costs: Quantity 0 Total Revenue $0 $9 $18 $27 $36 $45 $54 $63 $72 $81 Total Cost $10 $14 $19 $25 $32 $40 $49 $59 $70 $82 3 6 8 9 Refer to Table 14-9. In order to maximize proft, the firm will produce a level of output where marginal cost is equal to O b $10. O d. $5 Click Save and Submit to save and submit. Click Save All Answers to save all answers Save All

Explanation / Answer

Correct option: $9

Reason: At profit maximizing point, P = MR = MC

As it can be seen, P = MR = 9

Thus to maximize profits, MC must reach $9, which occurs at Q =6 units

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