A. 600
B. 800
C. 900
D. 1000

Correct Answer:

Option C – 900

Explanation

The profit-maximizing output level is 900 because at this, output level MC = MR. The marginal cost curve is tangential to the marginal revenue line which shows the price maximizing level output.

SEE ALSO  A set of factors that can shift the supply curve are changes in?

Copyright warnings! Do not copy.