Reference: Ref 11-7 (Table: Competitive Firm) Refer to the table that shows the revenue and cost schedules for a competitive firm. What is the marginal cost at the profit maximizing quantity?
A) $50
B) $80
C) $230
D) $300

Question

Reference: Ref 11-7 (Table: Competitive Firm) Refer to the table that shows the revenue and cost schedules for a competitive firm. What is the marginal cost at the profit maximizing quantity?
A) $50 
B) $80 
C) $230 
D) $300

Quizplus · Accepted Answer

The profit maximizing quantity is where marginal revenue equals marginal cost, which occurs at a quantity of 8. At this quantity, the marginal cost is $80.

Reference: Ref 11-7 (Table: Competitive Firm) Refer to the Table