The total cost schedule for a competitive firm is given by: OutputTotal Cost 0$10 160 280 3110 4165 5245 If market price is $60, how many units of output will the firm produce

4 units.

Explanation:

A firm should produce at the rate where Marginal Cost is equal to Marginal Revenue or at a point where they are at their closest.

From the above question, the Marginal Revenue is the Market Price of $60 because that is the extra amount made per sale.

The closest Marginal Cost to $60 is at 4 units. Here the cost of producing is $165 and the cost of producing 3 units is $110. The cost of producing the 4th unit,

= 165 - 110

= $55

The marginal cost of the 5th unit is $80 so it cannot be here.

At the 4th unit the profit made is,

= (Selling price * units) - cost

= (60 * 4) - 165

= $75

This will be the highest profit the company can make.

the answer is true

for e2020 ; -;

answer(eu) is the correct answer;