Table 14-7
A firm in a competitive market has the following cost structure:

$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
\text { (Dollars) }
\end{array} \
\hline 0 & 5 \
\hline 1 & 10 \
\hline 2 & 12 \
\hline 3 & 15 \
\hline 4 & 24 \
\hline 5 & 40 \
\hline
\end{array}$$
-Refer to Table 14-7. If the market price is $16, this firm will

Question

Table 14-7
A firm in a competitive market has the following cost structure:
​
​
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
\text { (Dollars) }
\end{array} \
\hline 0 & 5 \
\hline 1 & 10 \
\hline 2 & 12 \
\hline 3 & 15 \
\hline 4 & 24 \
\hline 5 & 40 \
\hline
\end{array}$$
-Refer to Table 14-7. If the market price is $16, this firm will

Quizplus · Accepted Answer

In the short run, the firm will produce 5 units of output because at that quantity, marginal cost equals marginal revenue (price). In the long run, new firms will enter the market, driving down the price and causing the firm to exit.

Table 14-7 a Firm in a Competitive Market Has the Following

Table 14-7
a Firm in a Competitive Market Has the Following