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-(Table: Total Cost and Output) Look at the table Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. How many tubs of ice cream will Sergei produce in the long run?

Question

Use the following to answer questions: 
-(Table: Total Cost and Output) Look at the table Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. How many tubs of ice cream will Sergei produce in the long run?

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm will produce at the output level where marginal cost equals marginal revenue, which is also equal to the market price. Without the specific table data, we assume that option C (3 tubs) is the equilibrium output level where these conditions are met.

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