-If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce
A) 500 units per day.
B) 600 units per day.
C) 900 units per day.
D) zero units.

Question

-If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce
A) 500 units per day. 
B) 600 units per day. 
C) 900 units per day. 
D) zero units.

Quizplus · Accepted Answer

Under marginal cost pricing, the firm produces where price equals marginal cost, which is typically at a higher output level like 900 units per day.

-If a Marginal Cost Pricing Rule Is Imposed on the Firm