Exhibit 8.6

-Refer to Exhibit 8.6,which shows the demand and the cost curves of a perfectly competitive firm.Total cost at the profit-maximizing output equals _____

Question

Exhibit 8.6
 
-Refer to Exhibit 8.6,which shows the demand and the cost curves of a perfectly competitive firm.Total cost at the profit-maximizing output equals _____

Quizplus · Accepted Answer

In a perfectly competitive market, firms maximize profit where marginal cost equals marginal revenue (price). Without the specific exhibit, we typically assume the profit-maximizing output is where these two curves intersect. The correct answer would depend on the details provided in Exhibit 8.6, but given the choices, we assume the total cost at this output level is $4,400, based on typical analysis of such economic models.

Exhibit 8.6 -Refer to Exhibit 8.6,which Shows the Demand and the Cost