hi! may i know how to do this qns? An ice-cream parlour in Rome operates in a perfectly competitive market. For the ice-creamseller whose marginal, average variable, and average total cost curves are shown in thediagram below, what is the profit-maximizing level of output and the corresponding price inthe short-run?PAVC2.501.750.5075200 250Select one:O a. The profit-maximizing output is Q = 250 and the corresponding price is P = 2.50o b. The profit-maximizing output is Q = 200 and the corresponding price is P = 2.50O c. The profit-maximizing output is Q = 250 and the corresponding price is P = 1.15o d. The profit-maximizing output is Q = 75 and the corresponding price is P = 1.75

A perfectly competitive market is one that has a large number of buyers and sellers, selling…

An ice-cream parlour in Rome operates in a perfectly competitive market. For the ice-cream seller whose marginal, average variable, and average total cost curves are shown in the diagram below, what is the profit-maximizing level of output and the corresponding price in the short-run? AVC 2.50 1.75 0.50 75 200 250 Select one: O a. The profit-maximizing output is Q = 250 and the corresponding price is P = 2.50 o b. The profit-maximizing output is Q = 200 and the corresponding price is P = 2.50 o c. The profit-maximizing output is Q = 250 and the corresponding price is P = 1.15 o d. The profit-maximizing output is Q = 75 and the corresponding price is P = 1.75

An ice-cream parlour in Rome operates in a perfectly competitive market. For the ice-cream seller whose marginal, average variable, and average total cost curves are shown in the diagram below, what is the profit-maximizing level of output and the corresponding price in the short-run? AVC 2.50 1.75 0.50 75 200 250 Select one: O a. The profit-maximizing output is Q = 250 and the corresponding price is P = 2.50 o b. The profit-maximizing output is Q = 200 and the corresponding price is P = 2.50 o c. The profit-maximizing output is Q = 250 and the corresponding price is P = 1.15 o d. The profit-maximizing output is Q = 75 and the corresponding price is P = 1.75

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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