P= $7.00
Profit maximizing condition under perfectly competitive market is P=MC
Q | TC | MC=(Change in TC/Change in Q) |
0 | 220 | - |
100 | 1120 | 9 |
200 | 1520 | 4 |
300 | 1820 | 3 |
400 | 2170 | 3.5 |
500 | 2870 | 7 |
600 | 4470 | 16 |
Because at output level Q=500 units, P=MC.Therefore, the profit maximizing quantity = 500 units.
ents Quantity allery Refer to the table which shows the who un cost date of a...