In the graph below, what is the price and quantity produced by the firm in a...

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Question

In the graph below, what is the price and quantity produced by the firm in a competitive market?

Price MRİ Q, Quantity

a. P_a & Q_a

b. P_a & Q_b

c. P_b & Q_a

d. P_c & Q_b

e. None of the above.

business economics

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Answer 1

Answer #1

Ans) the correct option is c. Pb & Qa

In a competitive market, the optimal point is at price = marginal cost.

Supply curve is the marginal cost so at a point where demand = marginal cost = supply

When price is Pb and quantity is Qa, the optimality is achieved.q

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Answer 2

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