Use the following to answer questions:
-(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm. If the market price is $4.50, the profit-maximizing output is _____ units.

Question

Use the following to answer questions: 
-(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm. If the market price is $4.50, the profit-maximizing output is _____ units.

Quizplus · Accepted Answer

In a perfectly competitive market, the profit-maximizing output is where marginal cost (MC) equals the market price. Assuming the table provides the necessary cost data, the output level where MC is closest to $4.50 without exceeding it would be the profit-maximizing output.

Use the Following to Answer Questions