Chapter 53, Problem 2CYU

To determine

Graphical presentation of MR, MC, and profit maximization level.

Explanation of Solution

Marginal revenue and marginal cost with profit maximization point would be shown as:

  

Economics Concept Introduction

Introduction: According to the optimal output rule, a business firm enjoys the maximum profit from the production of output where MR (marginal revenue) is equal to MC (marginal cost).