Answer:
The question is missing a lot, so I looked for a similar question and found the attached image:
the profit-maximizing quantity is the quantity where MC = MR
in this case, the marginal revenue (or market price per unit) = $1.75
so the profit-maximizing quantity is 70 corn cobs
at this point, Cathy's total revenue = 70 x $1.75 = $122.50
Cathy's total costs = 70 x $2.25 = $157.50
Cathy's daily loss = -$35
the profit-maximizing quantity represents the quantity at which a company will either maximize profits or minimize losses, it doesn't mean that the company will always make a profit at that point.
