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Table 14-9
a Firm in a Competitive Market Has the Following

Question 186

Multiple Choice

Table 14-9
A firm in a competitive market has the following cost structure:


 Quantity  (Units)   Marginal Cost  (Dollars)  015210315420525\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Marginal Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & - \cdot \\\hline 1 & 5 \\\hline 2 & 10 \\\hline 3 & 15 \\\hline 4 & 20 \\\hline 5 & 25 \\\hline\end{array}
-Refer to Table 14-9. Consider a competitive market with 50 identical firms. Suppose the market demand is given by the equation QD = 200 ? 10P and the market supply is given by the equation QS = 10P. How many units should a firm in this market produce to maximize profit?


A) 1 unit
B) 2 units
C) 3 units
D) 4 units

Correct Answer:

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