Figure 8.4.2
-Refer to Figure 8.4.2 above. The figure describes the cost and revenue structure of a perfectly competitive coffee farm, on a per-unit basis. What is the profit maximizing number of sacks when the price of coffee in the market is $380 dollars?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the profit-maximizing output is where marginal cost (MC) equals the market price. If the price is $380, the farm should produce where MC equals $380, which is at 22 sacks.

Figure 8.4.2 -Refer to Figure 8.4.2 Above. the Figure Describes the Cost