Figure 9-15
-At which price and quantity is profit maximized for the competitive price-taker firm represented in Figure 9-15?
A) $40 and 80
B) $8 and 70
C) $4 and 40
D) $40 and 70
E) $8 and zero output

Question

Figure 9-15  
-At which price and quantity is profit maximized for the competitive price-taker firm represented in Figure 9-15?
A) $40 and 80 
B) $8 and 70 
C) $4 and 40 
D) $40 and 70 
E) $8 and zero output

Quizplus · Accepted Answer

In a competitive market, a price-taker firm maximizes profit where marginal cost equals marginal revenue. At $8 and 70 units, this condition is met.