The table given below shows the total revenue and total cost of a firm at different levels of output.Table 10.2

-What is the equilibrium price for the perfectly competitive firm described in Table 10.2?

Question

The table given below shows the total revenue and total cost of a firm at different levels of output.Table 10.2
 
-What is the equilibrium price for the perfectly competitive firm described in Table 10.2?

Quizplus · Accepted Answer

To find the equilibrium price of a perfectly competitive firm, we need to look at the intersection of the marginal cost (MC) and the average revenue (AR) curves. In this case, the MC curve intersects the AR curve at an output level of 5 units. At this level of output, the price (which is the same as AR) is $4. Therefore, the equilibrium price for this firm is $4.

The Table Given Below Shows the Total Revenue and Total