(Figure: Profit Maximization) in the Figure, How Many Units Should

question 93

Multiple Choice

(Figure: Profit Maximization) In the figure, how many units should be sold to maximize profits?
$\begin{array}{|c|c|c|c|c|}\hline \text { Quantity } & \text { Price } & \begin{array}{c}\text { Total } \\\text { Revenue }\end{array} & \text { Total Cost } & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} \\\hline 1 & \$ 9 & \$ 9 & \$ 12 & \$ 4 \\\hline 2 & 9 & 18 & 15 & 3 \\\hline 3 & 9 & 27 & 21 & 6 \\\hline 4 & 9 & 36 & 30 & 9 \\\hline 5 & 9 & 45 & 41 & 11 \\\hline\end{array}$

• A) two
• B) three
• C) four
• D) five

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Definitions:

Railroads

Transportation systems using trains to move goods and passengers along tracks, playing a key role in economic development by facilitating trade and movement.

Price War

A collapse of prices when tacit collusion breaks down.

Equilibrium Price

The price point where the supply of items meets the demand for the same items exactly.

Marginal Cost

This refers to the cost incurred in the production of one additional unit of goods or services, emphasizing its role in pricing and production decisions.