Question

Assume perfect conpetition. P is in the $ and Q is the number of

units. W = 20, Z=36, and Y=54. Given a price of $18 the profit
maximizing level of output(Q) for this firm is?

Answer 1

In perfect competition, a firm maximizes profits by determining the level of output where marginal revenue (MR) equals marginal cost (MC). For this firm, given a price of $18, the profit-maximizing level of output (Q) can be found by setting MR = MC and solving for Q.

Step-by-step explanation:

In perfect competition, a firm maximizes profits by determining the level of output where marginal revenue (MR) equals marginal cost (MC).

The profit-maximizing level of output (Q) can be found by setting MR = MC and solving for Q.

For this firm, given a price of $18, the profit-maximizing level of output (Q) would be the quantity where MR = MC.