Figure 10-7 Given the Cost and Demand Conditions Shown in Figure 10-7

Multiple Choice

Figure 10-7
Given the cost and demand conditions shown in Figure 10-7 for the competitive price-searcher firm, what price should it charge, and what quantity should it produce in order to maximize profit?

A) It should produce 10 units and charge a price of $5 per unit.
B) It should produce 10 units and charge a price of $8 per unit.
C) It should produce 10 units and charge a price of $10 per unit.
D) It should produce 18 units and charge a price of $7 per unit.