Table 10.3
-Refer to Table 10.3.The competitive industry will choose to produce ________ units of output.

Question

Quizplus · Accepted Answer

In a competitive industry, the industry will choose to produce at the point where marginal cost equals marginal revenue, which in this case is at 6 units of output. This is because at output levels below 6, marginal revenue is greater than marginal cost and the industry can increase profit by producing more. At output levels above 6, marginal cost is greater than marginal revenue and the industry can increase profit by producing less. Therefore, the best choice for the competitive industry is to produce 6 units of output.

Table 10.3 -Refer to Table 10.3.The Competitive Industry Will Choose to Produce