Refer to the table below. The perfectly competitive firm has a random demand with a 50 percent chance of being $7 and a 50 percent chance of being $9. What quantity should the firm produce to maximize its expected profit?



The above table summarizes the marginal cost of production at various quantity levels for a perfectly competitive firm.



A) 130

B) 110

C) 120

D) 140


A) 130

Economics

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Economics