Refer to the diagram to the right which shows the cost and d

Refer to the diagram to the right which shows the cost and demand curves for a profit - maximizing firm in a perfectly competitive market MC ATC If the market price is $30, the firm\'s profit maximizing output level AVC 0A.0. O B. 130 O c. 180. O D. 240 30.00 MR 22.00 20.00 130 180 240 Quantity

Solution

Answer:- If the market price is $30, the firm\'s profit-maximizing output level is

Correct Answer:- C:- 180

Reason:- profit-maximizing quantity is where MC and MR curves intersect each other. At this level, the corresponding quantity is 180.