Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The table presents a firm’s average variable cost at various output levels. There are no fixed costs. If the market price was $18, over what output range would a profit-maximising firm in a perfectly competitive industry make output in the short-run?

  • A1–2 units
  • B3–4 units
  • C4–5 units
  • D6–7 units

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