Your firm has increasing marginal costs as shown in the grap

Your firm has increasing marginal costs, as shown in the graph below. Adjust the graph to show the profit-maximizing quantity. be sure you are satisfied with your positioning of the graph when you leave this page: Profit is not maximized to the right of the profit-maximizing quantity found above because profit is not maximized to the left of the profit-maximizing quantity found because at lower quantities

Solution

The profit maximizing quantity as per theory should be at a point where MR=MC, this is at a quantity of (i think, figure though not clear) 300 units.

Any point above it will invite higher additional costs with respect to the revenues generated.

If he stops short of the level of output at which MR equals MC, he will be unnecessarily forgoing some profits which otherwise he could make

 Your firm has increasing marginal costs, as shown in the graph below. Adjust the graph to show the profit-maximizing quantity. be sure you are satisfied with y

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