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In the raspberry farm example, at what price and quantity do the marginal revenue and marginal cost curves cross?
AA price of $5 and a quantity of 90
BA price of $3 and a quantity of 70
CA price of $2 and a quantity of 50
DA price of $4 and a quantity of 80
Answer & Solution
Correct answer: D. A price of $4 and a quantity of 80
1. Table 8.3 tracks marginal cost against the constant $4 marginal revenue at each output level.
2. At a quantity of 80, marginal cost has risen to exactly $4, matching marginal revenue.
3. This crossing happens at a price of $4 and a quantity of 80.
4. The other price and quantity pairs listed belong to separate scenarios where the market price itself is different from $4.
_Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 8 "Perfect Competition", section 8.2 | How Perfectly Competitive Firms Make Output Decisions_
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