marginal cost of soccer cleats\nat which level of production does the company make the most profit?\n the…

marginal cost of soccer cleats\nat which level of production does the company make the most profit?\n the first pair of cleats\n the second pair of cleats\n the third pair of cleats\n the fourth pair of cleats

marginal cost of soccer cleats\nat which level of production does the company make the most profit?\n the first pair of cleats\n the second pair of cleats\n the third pair of cleats\n the fourth pair of cleats

Answer

Explanation:

Step1: Recall profit - maximization rule

Profit is maximized when marginal cost is minimized (assuming constant marginal revenue for simplicity in this context).

Step2: Identify minimum marginal cost from graph

From the graph, the marginal cost is lowest at the fourth pair of cleats where it is $1.

Answer:

the fourth pair of cleats