Figure 7-D
-Refer to Figure 7-D.A profit-maximizing firm in a perfectly competitive industry will produce ____ units of output if the market price equals $45.

Question

Figure 7-D 
-Refer to Figure 7-D.A profit-maximizing firm in a perfectly competitive industry will produce ____ units of output if the market price equals $45.

Quizplus · Accepted Answer

In a perfectly competitive market, a profit-maximizing firm will produce where marginal cost (MC) equals the market price. If the market price is $45, the firm will produce the quantity where MC is also $45, which is 650 units according to Figure 7-D.

Figure 7-D -Refer to Figure 7-D.A Profit-Maximizing Firm in a Perfectly Competitive