Exhibit 8-3 Cost per unit curves

In Exhibit 8-3, if the price of the firm's product is $2.00 per unit, the firm will produce:

Question

Exhibit 8-3 Cost per unit curves

In Exhibit 8-3, if the price of the firm's product is $2.00 per unit, the firm will produce:

Quizplus · Accepted Answer

At a price of $2.00 per unit, the firm will need to produce at a point where the cost per unit curve intersects the price line. This occurs at a quantity of 15 units per day, where the cost per unit is exactly $2.00. Producing any more units would result in costs that exceed revenue, while producing any fewer units would result in missed sales opportunities. Therefore, producing 15 units per day is the optimal quantity for this price level.

Exhibit 8-3 Cost Per Unit Curves