Use the figure to answer the following question(s).
Figure 10-10
-Given the cost and demand conditions depicted in Figure 10-10 for the competitive price-searcher firm, what is the price that the firm should charge if it wants to maximize its profit?
A) 20
B) 30
C) 40
D) 50

Question

Use the figure to answer the following question(s).
Figure 10-10 
-Given the cost and demand conditions depicted in Figure 10-10 for the competitive price-searcher firm, what is the price that the firm should charge if it wants to maximize its profit?
A) 20 
B) 30 
C) 40 
D) 50

Quizplus · Accepted Answer

To maximize profit, a competitive price-searcher firm should set its price where marginal cost (MC) equals marginal revenue (MR). In the context of the given options, this typically aligns with the price at which the firm can sell the quantity where MC equals MR, which is often depicted as the equilibrium price in such scenarios.

Use the Figure to Answer the Following Question(s)