Exhibit 8-10 Price and cost data for a firm
Q
P
AVC
ATC
MC
0
$12
?
?
?
1
12
3
5
5
2
12
5
6
7
3
12
7.3
8
12
4
12
9.5
10
16
In Exhibit 8-10, following the rule regarding MR and MC, the most profitable output level is:
A. 1.
B. 2.
C. 3.
D. 4.
Answer: C
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