Use the Figure Below to Answer the Following Question

question 52

Multiple Choice

Use the figure below to answer the following question.

Figure 12.3.5
-Refer to Figure 12.3.5, which shows the cost curves and the marginal revenue curve for a perfectly competitive firm. To maximize its profit, the firm produces ________ units of output and the price is ________ a unit.

• A)30; $40
• B)30; $30
• C)20; $40
• D)20; $30
• E)30; $32.50

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Definitions:

iPhone and iPad Apps

Software applications developed specifically for use on Apple's iPhone and iPad devices, available through the App Store.

Android

An operating system developed by Google for mobile devices, characterized by its open-source accessibility and widespread use in smartphones and tablets.

Cost Leadership

A business strategy aimed at becoming the lowest-cost producer in an industry, enabling it to offer products or services at a lower price than competitors.

Porter's Model

A strategic tool developed by Michael E. Porter used to analyze the competitive environment of an industry, including five forces: the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry.