-In Figure 5.1, what output would a perfect competitor produce?

Question

Quizplus · Accepted Answer

A perfect competitor will produce at the output level where marginal cost (MC) equals marginal revenue (MR), which is typically represented by the point where the MC curve intersects the demand curve (or the price line in a perfectly competitive market, since price equals MR). Without seeing Figure 5.1, the correct answer cannot be determined based on the given options. However, assuming option B is the correct answer implies that it represents the output level where MC = MR, according to the context provided.