The table below contains data for a firm's marginal cost of producing different daily outputs of organic strawberries. The firm operates in a perfectly competitive market.
| Output of cartons per day | Marginal cost (£) |
|---|---|
| 400 | 9 |
| 500 | 10 |
| 600 | 12 |
| 700 | 15 |
If the market price is £12 per carton, at which one of the following outputs per day will the firm maximise its profit?
400
500
600
700
136 exam-style questions on AQA A Level Economics 1.5 Perfect competition, imperfectly competitive markets and monopoly, covering 1.5.1 Market structures, 1.5.2 The objectives of firms, 1.5.3 Perfect competition, 1.5.4 Monopolistic competition (A-level only), 1.5.5 Oligopoly (A-level only), 1.5.6 Monopoly and monopoly power, 1.5.7 Price discrimination (A-level only), 1.5.8 The dynamics of competition and competitive market processes, 1.5.9 Contestable and non-contestable markets (A-level only), 1.5.10 Market structure, static efficiency, dynamic efficiency and resource allocation (A-level only), and 1.5.11 Consumer and producer surplus (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.