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Figure: A Perfectly Competitive Firm in the Short Run
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The firm's total cost of producing its most profitable level of output is:

Question

Use the following to answer questions :
Figure: A Perfectly Competitive Firm in the Short Run 
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The firm's total cost of producing its most profitable level of output is:

Quizplus · Accepted Answer

The most profitable level of output is where the firm produces where MC=MR, which in this case is at point D. At point D, the total cost is 0FKD, which is the sum of fixed cost and variable cost. Thus, the answer is C.

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