Use Figure 7.2 to answer the following questions: a. What rate of output maximizes total profit? B. What is MR at that rate of output? What is price?…

Use Figure 7.2 to answer the following questions: a. What rate of output maximizes total profit? B. What is MR at that rate of output? What is price? C. If output is increased beyond that point, what is the relationship of MC to MR? How will this affect total profits? A. b. c. Profit is maximized where MR=MC which occurs at the output level of 4. The MR is equal to $7 at 4 units of output.

 
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