Refer to the data provided in Table 16.2 below to answer the following questions.
Table 16.2
$$\begin{array} { c c c }
\text { Tons of Glass } & \text { MC } & \text { MSC } \
\hline 1 & 20 & 40 \
2 & 30 & 50 \
3 & 40 & 60 \
4 & 50 & 70 \
5 & 60 & 80 \
\hline
\end{array}$$
-Refer to Table 16.2. This glass-recycling firm is perfectly competitive and is not forced to take damage costs into account. If the market price of glass is $50 a ton, the firm will produce

Question

Refer to the data provided in Table 16.2 below to answer the following questions.
Table 16.2
 $$\begin{array} { c c c } 
\text { Tons of Glass } & \text { MC } & \text { MSC } \
\hline 1 & 20 & 40 \
2 & 30 & 50 \
3 & 40 & 60 \
4 & 50 & 70 \
5 & 60 & 80 \
\hline
\end{array}$$
-Refer to Table 16.2. This glass-recycling firm is perfectly competitive and is not forced to take damage costs into account. If the market price of glass is $50 a ton, the firm will produce

Quizplus · Accepted Answer

At a market price of $50 a ton, the firm's marginal cost is equal to $50, which is below its average cost. Therefore, the firm will produce at its profit-maximizing output level, which is where marginal cost equals marginal revenue, or in this case, where marginal cost equals the market price of $50. Looking at the table, we can see that the firm's marginal cost is also $50 at an output level of 4 tons, so the firm will produce 4 tons of glass.

Refer to the Data Provided in Table 16 -Refer to Table 16