Economics (AS & A Level) · May / June 2022 · Paper 31 · Question 11

The table shows a firm's total costs corresponding to different levels of output. | units of output | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | | total cost ($) | 8 | 14 | 18 | 22 | 28 | 36 | 46 | 58 | If the market price is $8, within which range of output would a profit-maximising firm in a perfectly competitive industry produce in the short run?

1. A1–2 units
2. B3–4 units
3. C5–6 units
4. D7–8 units

As printed in the paper