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Question
Table 12-1| Quantity | Total Cost (dollars) | Variable Cost (dollars) |
| 0 | $1,000 | $0 |
| 100 | 1,360 | 360 |
| 200 | 1,560 | 560 |
| 300 | 1,960 | 960 |
| 400 | 2,760 | 1,760 |
| 500 | 4,000 | 3,000 |
| 600 | 5,800 | 4,800 |
Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity?
A) 300 units
B) 400 units
C) 500 units
D) 600 units
Answer
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