Item 32

Use the following graph to answer the next question.

The horizontal axis from left to right lists values as 90, 160, and 195. The vertical axis from bottom to top lists values as 8, 14, and 16. Two decreasing lines MR and D are drawn from the same point. MR has a greater slope than D and meets the horizontal axis at 180. D meets the horizontal axis beyond 195. Another increasing curve, MC intersects both MR and D. The dotted straight lines from both the axes connects to the data points at D as follows: data point (90, 16); (160, 14) at point of intersection of MC and D; and (195, 8). The values used in description are approximate.

If the industry were perfectly competitive, the quantity of output produced would be

Multiple Choice

90.

160.

195.

a level that is not labeled in the graph.