Table 13-8
Suppose that a firm in a competitive market faces the following revenues and costs:

-Refer to Table 13-8.In order to maximize profits,the firm will produce

Question

Table 13-8
Suppose that a firm in a competitive market faces the following revenues and costs:
 
-Refer to Table 13-8.In order to maximize profits,the firm will produce

Quizplus · Accepted Answer

The firm should produce where marginal revenue equals marginal cost in order to maximize profits. In this case, that occurs at a quantity of 6, as marginal revenue is $12 and marginal cost is $12. Therefore, the firm should produce 6 units of output.

Table 13-8 Suppose That a Firm in a Competitive Market Faces the Faces