Table 14-8 Suppose That a Firm in a Competitive Market Faces the Faces

question 601

Multiple Choice

Table 14-8
Suppose that a firm in a competitive market faces the following revenues and costs:
-Refer to Table 14-8. In order to maximize profits, the firm will produce

• A)1 unit of output because marginal cost is minimized.
• B)4 units of output because marginal revenue exceeds marginal cost.
• C)5 units of output because marginal revenue equals marginal cost.
• D)7 units of output because total revenue is maximized.