Final answer:
A business maximizes its profits by producing at the quantity where marginal cost meets marginal revenue. This criterion holds for both perfectly competitive firms and monopolists, ensuring that production is efficient and profits are maximized. Therefore, the correct option is C.
Step-by-step explanation:
The quantity a business will produce to maximize its profits is c. where marginal cost meets marginal revenue. This profit-maximization condition applies to both perfectly competitive firms and monopolists. In a competitive market, a firm will increase production until the market price, which equals marginal revenue for the firm, is equal to the firm's marginal cost. For a monopolist, the profit-maximizing quantity also occurs where marginal revenue equals marginal cost, although the monopolist additionally considers the demand curve to set the price.
It's crucial for businesses to not produce at a quantity where marginal cost exceeds marginal revenue, as doing so would lower profits. By finding the point where MR = MC, businesses can ensure they are operating at the most efficient level in terms of output and pricing, maximizing their potential profits.