(Figure: The Profit-Maximizing Output and Price in the Diamond Market) Use Figure: The Profit-Maximizing Output and Price in the Diamond Market. Assume that there are no fixed costs and that AC = MC = $200. Under perfect competition, the price of the good would be _____, and _____ units would be produced.
A)$600; 8
B)$200; 8
C)$200; 16
D)$600; 16

Question

(Figure: The Profit-Maximizing Output and Price in the Diamond Market) Use Figure: The Profit-Maximizing Output and Price in the Diamond Market. Assume that there are no fixed costs and that AC = MC = $200. Under perfect competition, the price of the good would be _____, and _____ units would be produced. 
A)$600; 8 
B)$200; 8 
C)$200; 16 
D)$600; 16

Quizplus · Accepted Answer

The Answer of (Figure: The Profit-Maximizing Output and Price in the Diamond Market) Use Figure: The Profit-Maximizing Output and Price in the Diamond Market. Assume that there are no fixed costs and that AC = MC = $200. Under perfect competition, the price of the good would be _____, and _____ units would be produced. 
A)$600; 8 
B)$200; 8 
C)$200; 16 
D)$600; 16

(Figure: the Profit-Maximizing Output and Price in the Diamond Market)