Exhibit 8-17 Marginal revenue and cost per unit curves
-As shown in Exhibit 8-17, the price at which the firm earns zero economic profit in the short-run is:

Question

Exhibit 8-17 Marginal revenue and cost per unit curves 
-As shown in Exhibit 8-17, the price at which the firm earns zero economic profit in the short-run is:

Quizplus · Accepted Answer

The point at which the marginal cost curve intersects the marginal revenue curve is the profit-maximizing output level. At this level, the marginal cost equals the marginal revenue, which is $20 per unit. Therefore, the price at which the firm earns zero economic profit (i.e., breaks even) is also $20 per unit.

Exhibit 8-17 Marginal Revenue and Cost Per Unit Curves