The Figure Below Shows the Cost Curves of a Firm

question 217

Multiple Choice

The figure below shows the cost curves of a firm in a competitive market. The firm always makes the choice to maximize its profit.

-Refer to the figure above.If the market price of the product is $3.25,the firm's profit maximizing output is ________ and the firm's maximum profit is ________.

• A) 1,200 units; $1,200
• B) 1,200 units; $1,800
• C) 1,100 units; $875
• D) 1,100 units; $600

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