Use the figure below to answer the following question. Figure 11.3.4
-Refer to Figure 11.3.4,which shows the cost curves of Paul's Picture Frames Inc.The picture frame market is perfectly competitive and the market price is $12 a frame.Paul produces ________ frames each day and makes daily total revenue of ________.

Question

Use the figure below to answer the following question.  Figure 11.3.4
-Refer to Figure 11.3.4,which shows the cost curves of Paul's Picture Frames Inc.The picture frame market is perfectly competitive and the market price is $12 a frame.Paul produces ________ frames each day and makes daily total revenue of ________.

Quizplus · Accepted Answer

According to the figure, the profit-maximizing quantity of frames is where MC=MR, which is at 30 frames. At this quantity, the total cost is approximately $240, so the total revenue of $360 (30 frames x $12 price) results in a profit of $120. Therefore, the answer is D, 30 frames with a daily total revenue of $360.

Use the Figure Below to Answer the Following Question