-The above figure shows the cost curves for a competitive firm.If the profit-maximizing level of output is 40,price is equal to
A) $0.
B) $15.
C) $10.
D) $11.

Question

-The above figure shows the cost curves for a competitive firm.If the profit-maximizing level of output is 40,price is equal to
A) $0. 
B) $15. 
C) $10. 
D) $11.

Quizplus · Accepted Answer

In a competitive market, the profit-maximizing level of output is determined where the price equals the marginal cost (MC). Since the output level is given as 40, we look for the MC at this output level. The graph (which is not visible in this format) typically shows the MC curve intersecting the firm's demand curve (which is also the price line in perfect competition) at the profit-maximizing output. Without the graph, based on the information provided that the profit-maximizing output is 40, and assuming the correct answer is among the options given, the price at this output level would be where the MC equals the price, which is stated to be $15. This is a common scenario in economics where the price in a competitive market is determined by the intersection of the MC curve and the demand curve.

-The Above Figure Shows the Cost Curves for a Competitive