### Perfectly Competitive Firm: Short-Run Revenues, Costs, and Profit#### Table Breakdown- **Columns:** - Labor Input - Quantity of Total Product (Q=TP) - Marginal Product (MP=ΔQ/ΔL) - Variable Cost (VC) at W=$20 - Fixed Cost (FC) - Total Cost (TC=VC+FC) - Marginal Cost (MC=ΔTC/ΔQ) - Average Total Cost (ATC=TC/Q) - Price (P) - Total Revenue (TR=P*Q) - Profit (Π=TR-TC)- **Rows:** - Input values range from 0 to 6, with corresponding calculations for each output level indicating how cost structures and revenues change as input increases.#### Highlights- The **Profit** column indicates that the maximum profit of $80 occurs when the Quantity (Q) is 30.#### Discussion Questions1. What does the relationship between MP and MC indicate?2. At what level of Q is profit maximized?3. Interpret the Total Revenue and Total Cost intersection.#### Educational Question72. In the video, what is the level of output that will maximize the firm’s profit?- Select one: - a. Q=23 - b. Q=26 - c. Q=29 - d. Q=30**Answer:** The level of output maximizing the firm's profit is indicated at Q=30, aligning with the maximum profit value of $80 from the table.

In a perfectly competitive market, there is a large number of firms selling homogenous products at a…

Answered: 72. In the video, what is the level of…

72. In the video, what is the level of output that will maximize the firm's profit? Select one: a. Q=23 b. Q=26 c. Q=29 d. Q=30

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Perfectly Competitive Firm: Short-Run Revenues, Costs, and Profit

#### Table Breakdown

- **Columns:**
- Labor Input
- Quantity of Total Product (Q=TP)
- Marginal Product (MP=ΔQ/ΔL)
- Variable Cost (VC) at W=$20
- Fixed Cost (FC)
- Total Cost (TC=VC+FC)
- Marginal Cost (MC=ΔTC/ΔQ)
- Average Total Cost (ATC=TC/Q)
- Price (P)
- Total Revenue (TR=P*Q)
- Profit (Π=TR-TC)

- **Rows:**
- Input values range from 0 to 6, with corresponding calculations for each output level indicating how cost structures and revenues change as input increases.

#### Highlights

- The **Profit** column indicates that the maximum profit of $80 occurs when the Quantity (Q) is 30.

#### Discussion Questions
1. What does the relationship between MP and MC indicate?
2. At what level of Q is profit maximized?
3. Interpret the Total Revenue and Total Cost intersection.

#### Educational Question

72. In the video, what is the level of output that will maximize the firm’s profit?

- Select one:
- a. Q=23
- b. Q=26
- c. Q=29
- d. Q=30

**Answer:** The level of output maximizing the firm's profit is indicated at Q=30, aligning with the maximum profit value of $80 from the table.

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