Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market: T o t a l P r o d u c t 1 2 3 4 5 6 7 8 9 10 11 12 A v e r a g e F i x e d C o s t $ 100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 A v e r a g e V a r i a b l e C o s t $ 17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 Average Total Marginal Cost Cost $ 117.00 $ 17 66.00 15 48.33 13 39.25 12 34.00 13 30.67 14 30.00 26 30.00 30 30.55 35 31.60 41 33.09 48 35.00 56 \begin{array}{c}\begin{array}{c}\Total\Product\\hline1 \2 \3 \4 \5 \6 \7 \8 \9 \10 \11 \12\end{array}\begin{array}{lll}Average\Fixed\Cost\\hline \$ 100.00 \ 50.00 \ 33.33 \ 25.00 \ 20.00 \16.67\ 14.29 \ 12.50 \ 11.11 \ 10.00 \ 9.09 \ 8.33 \\end{array}\begin{array}{lll}Average\Variable\Cost\\hline \$ 17.00 \ 16.00 \ 15.00 \ 14.25 \ 14.00 \ 14.00 \15.71\ 17.50 \19.44 \ 21.60 \ 24.00 \ 26.67 \end{array}\begin{array}{ccc} ext { Average }\ ext { Total } & & ext { Marginal }\ ext { Cost } & & ext { Cost }\\hline \$ 117.00 & & \$ 17 \66.00 & & 15 \48.33 & & 13 \39.25 & & 12 \34.00 & & 13 \30.67 & & 14 \30.00 & & 26 \30.00 & & 30 \30.55 & & 35 \31.60 & & 41 \33.09 & & 48 \35.00 & & 56\end{array}\end{array} T o t a l P ro d u c t 1 2 3 4 5 6 7 8 9 10 11 12 A v er a g e F i x e d C os t $100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 A v er a g e Va r iab l e C os t $17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 Average Total Cost $117.00 66.00 48.33 39.25 34.00 30.67 30.00 30.00 30.55 31.60 33.09 35.00 Marginal Cost $17 15 13 12 13 14 26 30 35 41 48 56 Refer to the data.If the market price for the firm's product is $32,the competitive firm will produce:A) 8 units at an economic profit of $16.B) 6 units at an economic profit of $7.98.C) 10 units at an economic profit of $4.D) 7 units at an economic profit of $41.50.

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Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market:   T o t a l P r o d u c t 1 2 3 4 5 6 7 8 9 10 11 12 A v e r a g e F i x e d C o s t $ 100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 A v e r a g e V a r i a b l e C o s t $ 17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67  Average   Total   Marginal   Cost   Cost  $ 117.00 $ 17 66.00 15 48.33 13 39.25 12 34.00 13 30.67 14 30.00 26 30.00 30 30.55 35 31.60 41 33.09 48 35.00 56 \begin{array}{c}\begin{array}{c}\Total\Product\\hline1 \2 \3 \4 \5 \6 \7 \8 \9 \10 \11 \12\end{array}\begin{array}{lll}Average\Fixed\Cost\\hline \$ 100.00 \ 50.00 \ 33.33 \ 25.00 \ 20.00 \16.67\ 14.29 \ 12.50 \ 11.11 \ 10.00 \ 9.09 \ 8.33 \\end{array}\begin{array}{lll}Average\Variable\Cost\\hline \$ 17.00 \ 16.00 \ 15.00 \ 14.25 \ 14.00 \ 14.00 \15.71\ 17.50 \19.44 \ 21.60 \ 24.00 \ 26.67 \end{array}\begin{array}{ccc}	ext { Average }\	ext { Total }  & & 	ext { Marginal }\	ext { Cost } & & 	ext { Cost }\\hline \$ 117.00  &   &  \$ 17 \66.00  &   &  15 \48.33  &   &  13 \39.25  &   &  12 \34.00  &   &  13 \30.67  &   &  14 \30.00  &   &  26 \30.00  &   &  30 \30.55  &   &  35 \31.60  &   &  41 \33.09  &   &  48 \35.00  &   &  56\end{array}\end{array} T o t a l P ro d u c t 1 2 3 4 5 6 7 8 9 10 11 12 ​ ​ A v er a g e F i x e d C os t $100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 ​ ​ A v er a g e Va r iab l e C os t $17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 ​ ​  Average   Total   Cost  $117.00 66.00 48.33 39.25 34.00 30.67 30.00 30.00 30.55 31.60 33.09 35.00 ​ ​  Marginal   Cost  $17 15 13 12 13 14 26 30 35 41 48 56 ​ ​ ​   Refer to the data.If the market price for the firm's product is $32,the competitive firm will produce:A)  8 units at an economic profit of $16.B)  6 units at an economic profit of $7.98.C)  10 units at an economic profit of $4.D)  7 units at an economic profit of $41.50.

Diamond Janae · Accepted Answer

Final Answer : A, Explanation :  At a market price of $32, the firm will produce 8 units, where marginal cost equals price. At this output level, the firm's total revenue is $256 (8 x $32), and its total cost is $240 (8 x $30). Therefore, the firm's economic profit is $16.

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