Figure 5.2
-In Figure 5.2, what output would a perfect competitor produce?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm will produce at the level where marginal cost (MC) equals marginal revenue (MR) to maximize profit. Without seeing Figure 5.2, the specific choice cannot be determined based on the question alone. However, assuming choice B represents the correct output level where MC = MR, it would be the output a perfect competitor produces.

Figure 5.2 -In Figure 5.2, What Output Would a Perfect Competitor Produce