Figure 9-4
Figure 9-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market.
-Refer to Figure 9-4.If the market price is $30,the firm's profit-maximizing output level is

Question

Figure 9-4
  Figure 9-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market.
-Refer to Figure 9-4.If the market price is $30,the firm's profit-maximizing output level is

Quizplus · Accepted Answer

At the profit-maximizing output level, the marginal cost (MC) equals the market price. From the graph, we can see that the MC curve intersects the demand curve at Q = 180 when the market price is $30. So, at this output level, the firm can maximize its profit. Therefore, the answer is C) 180.

Figure 9-4 Figure 9-4 Shows the Cost and Demand Curves