A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.\ a. What is its profit? b. What is its marginal cost? c. What is its average variable cost?
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.\ a. What is its profit? b. What is its marginal cost? c. What is its average variable cost?
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 9P
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A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10,
a. What is its profit?
b. What is its marginal cost?
c. What is its average variable cost?
d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
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