Homework Answers
| Q | TC | MC=Change in TC |
| 0 | 10 | - |
| 1 | 12 | 2 |
| 2 | 15 | 3 |
| 3 | 19 | 4 |
| 4 | 24 | 5 |
| 5 | 30 | 6 |
| 6 | 37 | 7 |
| 7 | 46 | 9 |
| 8 | 55 | 9 |
| 9 | 65 | 10 |
Profit maximizing condition under perfectly competitive market is produce output level where P=MC.
If P=$8 , then the firm produce 6 units to maximize profits. Because when Q=6 units , P>MC and When Q=7 units ,P<MC. Hence,option(B) is correct.
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