Use the following to answer question:
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.If the market price is G,the firm's total cost of producing its most profitable level of output is:

Question

Use the following to answer question: 
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.If the market price is G,the firm's total cost of producing its most profitable level of output is:

Quizplus · Accepted Answer

The firm's total cost of producing its most profitable level of output at price G can be found by identifying the quantity produced at that price and then tracing down to the total cost curve. The area 0FKD represents the total cost associated with producing the quantity of output where price equals marginal cost at point G.

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