The following graph (A)represents the cost curves for a representative firm in a perfectly competitive market.The market demand is shown in graph (B):

-Refer to the above graph above to answer this question.At the equilibrium price in this market,what will be the representative firm's output?

Question

The following graph (A)represents the cost curves for a representative firm in a perfectly competitive market.The market demand is shown in graph (B):
 
-Refer to the above graph above to answer this question.At the equilibrium price in this market,what will be the representative firm's output?

Quizplus · Accepted Answer

At the equilibrium price, the representative firm's output is where the firm's marginal cost equals the market price. The graph indicates that this occurs at an output level of 30.

The Following Graph (A)represents the Cost Curves for a Representative