Use the figure below to answer the following question. Figure 11.3.5
-Refer to Figure 11.3.5,which shows the cost curves and the marginal revenue curve for a perfectly competitive firm.To maximize profit,the firm produces ________ units of output and the price is ________ a unit.

Question

Use the figure below to answer the following question.  Figure 11.3.5
-Refer to Figure 11.3.5,which shows the cost curves and the marginal revenue curve for a perfectly competitive firm.To maximize profit,the firm produces ________ units of output and the price is ________ a unit.

Quizplus · Accepted Answer

In a perfectly competitive market, a firm maximizes profit where marginal cost (MC) equals marginal revenue (MR). According to the given options, at 30 units, the price is $40, which aligns with the condition for profit maximization.

Use the Figure Below to Answer the Following Question