Figure: Optimal Output Refer to the figure. The competitive industry level of output is:
A) 40.
B) 65.
C) 80.
D) 100.

Question

Figure: Optimal Output  Refer to the figure. The competitive industry level of output is:
A) 40. 
B) 65. 
C) 80. 
D) 100.

Quizplus · Accepted Answer

At the intersection of the industry demand curve and the MC curve lies the industry-level output. In the given figure, the intersection point is at the output level of 80, which represents the optimal output for the competitive industry. Hence, the best choice is C) 80.

Figure: Optimal Output Refer to the Figure