The marginal revenue and marginal cost at various levels of output is as mentioned below:
Output Marginal Revenue ($) Marginal Cost
($)
100 16 14
150 15 12
200 12 10
250 9 9
Identify the level of output at which profit is maximized?
a. 100 units
b. 150 units
c. 200 units
d. 250 units
Answer: D