Figure 12-9

Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 12-9.At price P₁, the firm would produce

Question

Figure 12-9
  
Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 12-9.At price P₁, the firm would produce

Quizplus · Accepted Answer

At price P₁, the firm's marginal cost is higher than the price, so it would not produce any units as it would not be able to cover its variable costs. Therefore, the answer is D, zero units.

Figure 12-9 Figure 12-9 Shows Cost and Demand Curves Facing a Profit-Maximizing