he table below shows the price and cost information for a firm that operates in a perfectly competitive market. Based on this inform. hat is the profit-maximizing output quantity? Price Quantity Total Cost $8 $8 $6 1 $10 $8 $15 $21 $28 $35 2 $8 3 $8 4 $8 $8 6 $45 Profit is maximized at a quantity of type your answer. units, where it is equal to $ type your answer. Is the long run price in this market likely to be higher or lower than the current price of $8? type your answer.
he table below shows the price and cost information for a firm that operates in a perfectly competitive market. Based on this inform. hat is the profit-maximizing output quantity? Price Quantity Total Cost $8 $8 $6 1 $10 $8 $15 $21 $28 $35 2 $8 3 $8 4 $8 $8 6 $45 Profit is maximized at a quantity of type your answer. units, where it is equal to $ type your answer. Is the long run price in this market likely to be higher or lower than the current price of $8? type your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
what is the profit-maximizing output quantity?

Transcribed Image Text:The table below shows the price and cost information for a firm that operates in a perfectly competitive market. Based on this information,
what is the profit-maximizing output quantity?
Price
Quantity
Total Cost
$8
$8
$8
$8
$8
$8
$8
$6
$10
$15
$21
$28
$35
$45
1
2
3
4
5
6
Profit is maximized at a quantity of type your answer.
units, where it is equal to $ type your answer.
Is the long run price in this market likely to be higher or lower than the current price of $8? type your answer.
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Step 1
Perfect competition is the market structure in which there are large number of buyers and sellers selling homogeneous product and the entry and exit from the market is free.
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