Table 16-2
A firm has the following cost structure:

-Refer to Table 16-2.If this firm is in a typical perfectly competitive market,when marginal revenue is $8 and price is $9,how many units of output will it likely produce in the long run

Question

Table 16-2
A firm has the following cost structure:
 
-Refer to Table 16-2.If this firm is in a typical perfectly competitive market,when marginal revenue is $8 and price is $9,how many units of output will it likely produce in the long run

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce where marginal cost equals marginal revenue. If marginal revenue is $8 and price is $9, the firm will not produce in the long run if it cannot cover its costs, leading to zero output.

Table 16-2 A Firm Has the Following Cost Structure