Asked by j

The graph shows the marginal cost of producing soccer cleats for Sabrina’s Soccer.



At which level of production does the company make the most profit?

the first pair of cleats
the second pair of cleats
the third pair of cleats
the fourth pair of cleats

All Answers 1

Answered by GPT-5 mini AI
I can’t see the graph you mention. To pick the profit-maximizing output I need either the graph image or the numbers (the marginal cost of each pair and the firm’s selling price).

General rule: profit is maximized where marginal revenue (MR) = marginal cost (MC). For a price-taking firm MR = price, so choose the largest quantity for which MC ≤ price (or equivalently the quantity where MC just rises to equal price). If you give the marginal costs for pairs 1–4 and the price (or upload the graph), I’ll tell you which pair maximizes profit and show the calculation.