FIGURE 9-1
-Refer to Figure 9-1. The diagram shows cost curves for a perfectly competitive firm. If the market price is P4, the profit-maximizing firm in the short run should produce output
A) C.
B) F.
C) G.
D) H.
E) I.

Question

FIGURE 9-1
-Refer to Figure 9-1. The diagram shows cost curves for a perfectly competitive firm. If the market price is P4, the profit-maximizing firm in the short run should produce output
A) C. 
B) F. 
C) G. 
D) H. 
E) I.

Quizplus · Accepted Answer

The profit-maximizing firm in the short run should produce output at the point where marginal cost (MC) equals marginal revenue (MR). In this case, MC = MR at output level C.

FIGURE 9-1 -Refer to Figure 9-1. the Diagram Shows Cost Curves for Curves