In the diagram $$\(M C=\)$$ marginal cost $$\(; A C=\)$$ average cost; $$\(M R=\)$$ marginal revenue; $$\(A R=\)$$ average revenue. What will be the output of a profit-maximising firm whose cost and revenue functions are shown above?

A.
OW
B.
OX
C.
OY
D.
\(\mathrm{OZ}\)
Economics
IGCSE&ALevel
CAIE
Exam No:9708_s17_qp_33 Year:2017 Question No:8

Answer:

A

Knowledge points:

2.3.1 definition of price elasticity of supply (PES)

Solution:

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