Table 14-6
Suppose That a Firm in a Competitive Market

Multiple Choice

Table 14-6
Suppose that a firm in a competitive market faces the following revenues and costs:
​
​
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Total Revenue } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & 0 & 3 \\\hline 1 & 6 & 5 \\\hline 2 & 12 & 8 \\\hline 3 & 18 & 12 \\\hline 4 & 24 & 17 \\\hline 5 & 30 & 23 \\\hline 6 & 36 & 30 \\\hline 7 & 42 & 38 \\\hline\end{array}$$ ​
-Refer to Table 14-6. In order to maximize profits, the firm will produce

A) 1 unit of output because marginal cost is minimized.
B) 4 units of output because marginal revenue exceeds marginal cost.
C) 5 units of output because marginal revenue equals marginal cost.
D) 7 units of output because total revenue is maximized.