At which price and quantity is profit maximized for the competitive price-taker firm represented in Figure 9-15?

A) $40 and 80
B) $8 and 70
C) $4 and 40
D) $40 and 70
E) $8 and zero output

Profit Maximized

The point at which a firm or business achieves the highest level of profit possible with its current resources and market conditions.

Competitive Price-Taker Firm

A business that has no control over the market price and must accept the prevailing price set by market supply and demand conditions.

Price

The amount of money required to purchase a good or service, reflecting its value in economic transactions.