Use the Figure to Answer the Following Question(s)

question 219

Multiple Choice

Use the figure to answer the following question(s) .
Figure 9-8

The average total cost ( ATC ) and marginal costs ( MC ) of a firm producing in a price-taker industry are depicted in Figure 9-8. If the current market price of the firm's product is $3, what output should this firm produce per day?

• A) 10
• B) 15
• C) 20
• D) 25

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Definitions:

Price Per Unit

The cost of a single unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Marginal Revenue

Marginal revenue is the additional income earned from selling one more unit of a good or service.

Total Revenue

The overall amount of money generated by a business from its activities, such as sales of goods or services, before any expenses are subtracted.