Table 14-5
The table represents a demand curve faced by a firm in a competitive market.
-Refer to Table 14-5. For this firm, the price of the product is
A)$9.
B)$11.
C)$13.
D)$15.

Question

Table 14-5
The table represents a demand curve faced by a firm in a competitive market. 
-Refer to Table 14-5. For this firm, the price of the product is
A)$9. 
B)$11. 
C)$13. 
D)$15.

Quizplus · Accepted Answer

The firm will maximize its profit by producing at the quantity where marginal cost equals the market price, which in this case is where quantity is 8 and price is $11. At any other quantity, the marginal cost exceeds the market price and the firm would make a loss. Therefore, the best choice for the firm is to produce 8 units at a price of $11.

Table 14-5 The Table Represents a Demand Curve Faced by a Firm