Based on the selling quantities and the marginal cost in the table, if the company was in a purely competitive market, it would produce 8 units at an economic profit of $130.72.
What quantity would the company produce?
Because the company is in a purely competitive market, it will try to produce at the point where:
Price = Marginal cost
Or something close to this.
The price is $68.10 so the closest unit is 8 units where the Marginal cost is $68.07.
The economic profit is:
= (Selling price - average total cost) x number of units
= (68.10 - 51.76) x 8
= $130.72
Find out more on purely competitive markets at https://brainly.com/question/15146760
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