Use the figure below to answer the following question.

Figure 12.3.4
-Refer to Figure 12.3.4, which shows cost curves of Paul's Picture Frames Inc. The picture frame market is perfectly competitive and the market price is $12 a frame. Paul produces ________ frames each week and makes ________ total revenue.

Question

Use the figure below to answer the following question.
  
Figure 12.3.4
-Refer to Figure 12.3.4, which shows cost curves of Paul's Picture Frames Inc. The picture frame market is perfectly competitive and the market price is $12 a frame. Paul produces ________ frames each week and makes ________ total revenue.

Quizplus · Accepted Answer

At the market price of $12, Paul should produce where marginal cost equals price, which is 30 frames per week. Total revenue would be price times quantity, or $360.

Use the Figure Below to Answer the Following Question