Use the following to answer questions: Table: Competitive Firm 2 $$\begin{array} { c c c }
\hline \text { Quantity (Units) } & \text { Total Revenue (\$) } & \text { Total Cost (\$) } \
\hline 0 & 0 & 30 \
1 & 80 & 50 \
2 & 160 & 80 \
3 & 240 & 120 \
4 & 320 & 170 \
5 & 400 & 230 \
6 & 480 & 300 \
7 & 560 & 380 \
8 & 640 & 470 \
\hline
\end{array}$$
-(Table: Competitive Firm 2) Refer to the table that shows revenue and cost schedules for a competitive firm. At the profit-maximizing quantity, which of the following is TRUE?
I. MR = MC
II. Producer surplus is maximized.
III. Profits are equal to $180.
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Question

Use the following to answer questions: Table: Competitive Firm 2 $$\begin{array} { c c c } 
\hline \text { Quantity (Units) } & \text { Total Revenue (\$) } & \text { Total Cost (\$) } \
\hline 0 & 0 & 30 \
1 & 80 & 50 \
2 & 160 & 80 \
3 & 240 & 120 \
4 & 320 & 170 \
5 & 400 & 230 \
6 & 480 & 300 \
7 & 560 & 380 \
8 & 640 & 470 \
\hline
\end{array}$$
-(Table: Competitive Firm 2) Refer to the table that shows revenue and cost schedules for a competitive firm. At the profit-maximizing quantity, which of the following is TRUE?
I. MR = MC
II. Producer surplus is maximized.
III. Profits are equal to $180.
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Quizplus · Accepted Answer

At the profit-maximizing quantity, MR = MC, producer surplus is maximized, and profits are equal to $180.

Use the Following to Answer Questions: Table: Competitive Firm 2