Figure 5.1 Cost and Demand Conditions of a Perfectly Competitive Firm

-Refer to Figure 5.1. At the profit-maximizing output, the firm's total costs equal
A) $2,200
B) $2,600
C) $3,000
D) $3,400

Question

Figure 5.1 Cost and Demand Conditions of a Perfectly Competitive Firm
 
-Refer to Figure 5.1. At the profit-maximizing output, the firm's total costs equal
A) $2,200 
B) $2,600 
C) $3,000 
D) $3,400

Quizplus · Accepted Answer

The profit-maximizing output occurs where marginal cost equals marginal revenue. At this output level, the firm's total costs are $3,000.

Figure 51 Cost and Demand Conditions of a Perfectly Competitive Firm