Study the supply curve given below and answer the following question.

For the supplier, when the marginal cost of producing a unit is $2, his profit is maximized. What quantity would he supply?

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Solution

The correct option is D
4

Profit maximization occurs when MC = P. Since his profit maximization occurs at a marginal cost of $$$ 2, the market price is also $2. At this price, he would supply 4 units.

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Study the supply curve given below and answer the following question. For the supplier, when the marginal cost of producing a unit is $2, his profit is maximized. What quantity would he supply?

The correct option is D 4 Profit maximization occurs when MC = P. Since his profit maximization occurs at a marginal cost of $2, the market price is also $2. At this price, he would supply 4 units.

Study the supply curve given below and answer the following question.

For the supplier, when the marginal cost of producing a unit is $2, his profit is maximized. What quantity would he supply?

The correct option is D
4

Profit maximization occurs when MC = P. Since his profit maximization occurs at a marginal cost of $$$ 2, the market price is also $2. At this price, he would supply 4 units.