Table 14-7
Suppose that a firm in a competitive market faces the following revenues and costs:
-Refer to Table 14-7. If the firm is currently producing 14 units, what would you advise the owners?
A)decrease quantity to 13 units
B)increase quantity to 15 units
C)continue to operate at 14 units
D)increase quantity to 16 units

Question

Table 14-7
Suppose that a firm in a competitive market faces the following revenues and costs: 
-Refer to Table 14-7. If the firm is currently producing 14 units, what would you advise the owners?
A)decrease quantity to 13 units 
B)increase quantity to 15 units 
C)continue to operate at 14 units 
D)increase quantity to 16 units

Quizplus · Accepted Answer

The firm is currently producing at the point where marginal cost equals marginal revenue. At this point, the firm is maximizing its profit.

Table 14-7 Suppose That a Firm in a Competitive Market Faces the Faces