A perfectly competitive firm has a random marginal cost with a 60 percent chance of a high marginal cost of $100 and a 40 percent chance of a low marginal cost of $90. What is the firm's expected marginal cost?

How many units should the firm produce? In other words, at what level of output does marginal cost equal marginal revenue?

a. 1 b. 2 c. 3 d. 4

In the above figure, if this firm produces output level Q2, it has average total costs of

A. OF. B. OE. C. OD. D. OC.