The data are for a firm operating in perfect competition.

-Use Table 8.7 to answer this question.What is the firm's break-even price?

Question

The data are for a firm operating in perfect competition.
 
-Use Table 8.7 to answer this question.What is the firm's break-even price?

Quizplus · Accepted Answer

The firm's break-even price is where its total revenue equals its total cost. From Table 8.7, we can see that at a quantity of 8, the total cost is $688 and the total revenue is also $688. Therefore, the break-even price for the firm is $86 (total cost of $688 divided by quantity of 8). Thus, the answer is (C) $86.

The Data Are for a Firm Operating in Perfect Competition