Economics question about total cost and market price etc...
I got stumped by what should be a simple econ question but I cannot figure it out. It goes like this:
Suppose the total cost for various levels of output for a competitive firm are given in the table below:
How many units should the firm produce if the market price is $8? Well i know the answer to that is 6 (i think)
But what price will this firm charge in the long run? Thoughts? Oh and how you got the answer would be nice cause i tried what i thought was correct.