The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output. Table: 9.1
Refer to Table 9.1.The firm depicted in the table is a(n):

Question

The table given below shows the price of each unit of the product manufactured by a firm and the marginal cost of producing different units of the output. Table: 9.1
 Refer to Table 9.1.The firm depicted in the table is a(n):

Quizplus · Accepted Answer

The firm depicted in the table is a perfectly competitive firm. This is because the price of the output is constant at $50 and the marginal cost is also constant and equal to $50 for all levels of output. In perfect competition, a firm is a price-taker and has no market power to influence the market price of its output.

The Table Given Below Shows the Price of Each Unit