Use the figure to answer the following question(s).
Figure 9-9
-If the market price in Figure 9-9 increases to $60, what should the firm do?
A) produce 10 per day
B) produce 15 per day
C) produce 20 per day
D) increase its price to $70

Question

Use the figure to answer the following question(s).
Figure 9-9 
-If the market price in Figure 9-9 increases to $60, what should the firm do?
A) produce 10 per day 
B) produce 15 per day 
C) produce 20 per day 
D) increase its price to $70

Quizplus · Accepted Answer

If the market price increases to $60, the firm should produce at the level where marginal cost equals the new market price, which is likely at 20 units per day based on typical cost curves.

Use the Figure to Answer the Following Question(s)