-Refer to Figure 9.4.In the short run,how much should the firm produce at the price P3?
A) 0
B) Q1
C) Q2
D) Q3

Name: -Refer to Figure 9.4.In the short run,how much should the firm produce at the price P3? A) 0 B) Q1 C) Q2 D) Q3
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Question

-Refer to Figure 9.4.In the short run,how much should the firm produce at the price P3?
A) 0 
B) Q1 
C) Q2 
D) Q3

Quizplus · Accepted Answer

At price P3, the firm should produce at the quantity where marginal cost (MC) equals marginal revenue (MR), which is typically the market price in perfect competition. This is the profit-maximizing level of output, assuming P3 intersects the MC curve at Q2.