Use the following to answer question:
-(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.How many tubs of ice cream will Sergei produce in the long run?

Question

Use the following to answer question: 
-(Table: Total Cost and Output)Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.How many tubs of ice cream will Sergei produce in the long run?

Quizplus · Accepted Answer

In the long run, producers will produce where marginal cost equals marginal revenue. Looking at the table, when 3 tubs of ice cream are produced, the marginal cost is $9, which is equal to the marginal revenue of $9. Therefore, Sergei will produce 3 tubs of ice cream in the long run.

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