(Figure: Price and Quantity I) the Graph Shows a Firm's

question 86

Multiple Choice

(Figure: Price and Quantity I) The graph shows a firm's marginal cost curve. This firm operates in a perfectly competitive industry with market demand and supply curves given by Q^d = 100 - 8P and Q^S = -20 + 2P, where Q is measured in millions of units. Based on the figure, how many units of output will the firm produce at the equilibrium price?

• A) 1,100
• B) 800
• C) 1,200
• D) 400