Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The table gives a firm’s total costs at different output levels: units 1-8, total cost $8,14,18,22,28,36,46,58. If the market price is $8, in which output range would a profit maximising firm in a perfectly competitive industry choose to produce during the short run?

  • A1 - 2 units
  • B3 - 4 units
  • C5 - 6 units
  • D7 - 8 units

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