Refer to the table shown. If the market price is $8, a perfectly competitive profit-maximizing firm will produce: $$\begin{array} { | c | c | }
\hline \text { Quantity } & \text { Marginal Cast } \
\hline 1 & \$ 3 \
\hline 2 & 5 \
\hline 3 & 7 \
\hline 4 & 9 \
\hline
\end{array}$$

Question

Refer to the table shown. If the market price is $8, a perfectly competitive profit-maximizing firm will produce: $$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Marginal Cast } \
\hline 1 & \$ 3 \
\hline 2 & 5 \
\hline 3 & 7 \
\hline 4 & 9 \
\hline
\end{array}$$

Quizplus · Accepted Answer

A perfectly competitive profit-maximizing firm will produce where the market price equals its marginal cost. The market price is $8, and the closest marginal cost without going over is $7 for 3 units of output.

Refer to the Table Shown A)1 Unit of Output