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Given the Accompanying Diagram, Which Level of Output Should the Entrepreneur

Question 102

Multiple Choice

Given the accompanying diagram, which level of output should the entrepreneur choose to maximize profits? A) either X₁ or X₃ since the profit level will be the same B) X₃ since any increase in output will reduce profits C) X₁ since any decrease in output will reduce profits D) X₂ since at this level the difference between MR and MC is maximized Given the accompanying diagram, which level of output should the entrepreneur choose to maximize profits?


A) either X₁ or X₃ since the profit level will be the same
B) X₃ since any increase in output will reduce profits
C) X₁ since any decrease in output will reduce profits
D) X₂ since at this level the difference between MR and MC is maximized

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