This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
According to the table shown,what is the market price?

Question

This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market. 
According to the table shown,what is the market price?

Quizplus · Accepted Answer

The market price in a perfectly competitive market is determined by the intersection of the supply and demand curves, and is not influenced by any individual firm. Therefore, the market price cannot be determined from the information given in the table. However, we can see that at the level of output where the marginal cost equals the average variable cost (in this case, a quantity of 5), the firm minimizes its losses. At any level of output below 5, the firm incurs losses, and at any level of output above 5, the firm earns profits. Therefore, the best choice for the firm would be to produce a quantity of 5 and minimize its losses.

This Table Shows the Total Costs for Various Levels of Output