Figure 10-1

-If the profit-maximizing firm depicted in Figure 10-1 is perfectly competitive, how much output should it produce?

Question

Figure 10-1
​ 
-If the profit-maximizing firm depicted in Figure 10-1 is perfectly competitive, how much output should it produce?

Quizplus · Accepted Answer

In perfect competition, firms produce at the point where marginal cost equals marginal revenue, which is at the intersection of the MC and MR curves. In this case, that intersection occurs at point C, so the firm should produce Qc units of output.

Figure 10-1 ​

Figure 10-1