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(Figure: Price and Quantity I) the Graph Shows a Firm's

Question 36

Multiple Choice

(Figure: Price and Quantity I) The graph shows a firm's marginal cost curve. This firm operates in a perfectly competitive industry with market demand and supply curves given by Qd = 100 - 8P and QS = -20 + 2P, where Q is measured in millions of units. Based on the figure, how many units of output will the firm produce at the equilibrium price? (Figure: Price and Quantity I)  The graph shows a firm's marginal cost curve. This firm operates in a perfectly competitive industry with market demand and supply curves given by Q<sup>d</sup> = 100 - 8P and Q<sup>S</sup> = -20 + 2P, where Q is measured in millions of units. Based on the figure, how many units of output will the firm produce at the equilibrium price?   A)  1,100 B)  800 C)  1,200 D)  400


A) 1,100
B) 800
C) 1,200
D) 400

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