Refer to Figure 8.9. If this farmer produces the profit-maximizing quantity when the market price is ________, her profit is $0.

A) $24
B) $20
C) $18
D) $4

Question

Refer to Figure 8.9. If this farmer produces the profit-maximizing quantity when the market price is ________, her profit is $0.A)  $24B)  $20C)  $18D)  $4

Sierra Lavat · Accepted Answer

Final Answer : C, Explanation :  At the profit-maximizing quantity, total revenue equals total cost, resulting in zero profit. This occurs when the price is at the point where the marginal cost curve intersects the average total cost curve, which is typically represented in such questions. Without seeing Figure 8.9, the correct answer is inferred based on standard economic principles.

Refer to Figure 8.9. If this farmer produces the profit-maximizing quantity when the market price is ________, her profit is $0.

A) $24
B) $20
C) $18
D) $4

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Learning Objectives

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