Figure 8.7 Figure 8.7 shows cost and demand curves facing a profit-maximising, perfectly competitive firm.
-Refer to Figure 8.7.At price P₄, the firm would produce

Question

Figure 8.7 Figure 8.7 shows cost and demand curves facing a profit-maximising, perfectly competitive firm. -Refer to Figure 8.7.At price P₄, the firm would produce

Quizplus · Accepted Answer

The profit-maximizing output for a perfectly competitive firm is where marginal cost (MC) equals marginal revenue (MR), which occurs at the point where the two curves intersect. In this case, it occurs at Q₄ units. Therefore, the firm would produce Q₄ units at price P₄.

Figure 87 Figure 8