Homework Answers
Answer : The answer is option A.
For quantity 7 : TC = TC of quantity 6 + MC of quantity 7 = 22 + 7 = 29
MC of quantity 8 = TC of quantity 8 - TC of quantity 7 = 37 - 29 = 8
In perfectly competitive market for firms P (Price) = MC (Marginal Cost). As here the firm is perfectly competitive firm and MC is 8, hence the price at quantity of 8 units is $8.
Total revenue (TR) = P * Quantity = 8 * 8 = 64
TC (Total Cost) = 37
Profit = TR - TC = 64 - 37 = $27
Therefore, option A is correct.
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