Figure 12-9 shows cost and demand curves facing a profit-maximizing,perfectly competitive firm.
-Refer to Figure 12-9.At price P2,the firm would produce

Question

Quizplus · Accepted Answer

At price P2, the firm would produce where the marginal cost (MC) equals the price (P2) because this would maximize profit. This occurs at the intersection of the MC and the marginal revenue (MR) curves, which occurs at output level Q2. Therefore, the answer is A) Q2 units.

Figure 12-9 Shows Cost and Demand Curves Facing a Profit-Maximizing,perfectly