Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost...

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Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost of growing apples

business economics

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Answer 1

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Answer: 75 units

Profit maximizing output is where MR = MC

For perfectly competitive firm price = MR, so MR curve is a horizontal line at 5.5

So MR = 5.5

So MR = MC = 5.5 when output is 75 units (seeing from the graph)

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Answer 2

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