Graph 14-1

This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-1. When market price is at MC₄, a profit-maximising firm will produce what level of output?

Question

Graph 14-1
Graph 14-1 This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) . -Refer to Graph 14-1. When market price is at MC4, a profit-maximising firm will produce what level of output? A) Q1 B) Q2 C) Q3 D) Q4

Graph 14-1 This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) . -Refer to Graph 14-1. When market price is at MC<sub>4</sub>, a profit-maximising firm will produce what level of output? A) Q<sub>1</sub> B) Q<sub>2</sub> C) Q<sub>3</sub> D) Q<sub>4</sub>

This graph depicts the cost structure for a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-1. When market price is at MC₄, a profit-maximising firm will produce what level of output?

Quizplus · Accepted Answer

At the price level of MC₄, the profit-maximizing output level is where marginal cost (MC) equals price (P), which is Q₄. Therefore, the correct choice is D.

Graph 14-1 This Graph Depicts the Cost Structure for a Firm in Structure