Refer to Figure 8.7.3 above. At P = $80, the profit-maximizing output in the short run is:

A) 22.
B) 34.
C) 39.
D) 50.
E) 64.

Question

Refer to Figure 8.7.3 above. At P = $80, the profit-maximizing output in the short run is:A)  22.B)  34.C)  39.D)  50.E)  64.

Tymeriah Davis · Accepted Answer

Final Answer : C, Explanation :  The profit-maximizing output in the short run is where MR=MC. At P=$80, the corresponding MR is $80. From the graph, we can see that at $80, the MC curve intersects the AVC curve at Q=15 and the ATC curve at Q=39. Since the output level should cover at least the variable cost in the short run, the profit-maximizing output level is 39.

Refer to Figure 8.7.3 above. At P = $80, the profit-maximizing output in the short run is:

A) 22.
B) 34.
C) 39.
D) 50.
E) 64.

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