Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit of output is $30, this firm's total cost at its profit-maximizing level of output is ________.
A)$900
B)$1,200
C)$1,600
D)$2,700

Question

Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit of output is $30, this firm's total cost at its profit-maximizing level of output is ________. 
A)$900 
B)$1,200 
C)$1,600 
D)$2,700

Quizplus · Accepted Answer

At Q = 80, ATC is $20. Thus, total cost (ATC × Q)is 80 × $20 = $1,600.

Refer to the Accompanying Graph