I was told that both answers are 32 units but the price is different so is 32 th
ID: 1119700 • Letter: I
Question
I was told that both answers are 32 units but the price is different so is 32 the the correct answer for both and why
Use figure 6.3 to answer questions 25-30 Figure 6.3 10- third 32 38 43 Quantity 25. Refer to Figure 6.3 for a perfectly competitive firm. If price is S6, the profit-maximizing rate of output is: A) 32 units. B) 38 units. C) 43 units in the ks in D) 48 units. 26. Ref to Figure 6.3 for a perfectly competitive firm. If price is $4, the profit-maximizing er rate of output is: A) 43 units. B) 38 units. C) 32 units. D) 25 units.Explanation / Answer
Answer 25 : When price is $6, the profit maximisation rate of output is 38 units because in perfect competition market price is always equal to MR and demand where profit maximisation condition said that MR=MC and here $6 meet MC curve at 38 units of output.
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Answer 26 : When price is $4, the profit maximisation rate of output is 32 units because as we know in perfect competition market price is equal to MRand demand curve where as profit maximisation condition said that MR =MC and here MC curve meet at 32 units of output.
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