8-2 Determine the perfectly competitive firm's profit-maximizing output in the short run (Short-Run Profit Maximization) A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $150. 4. Profit/ Output FC VC TC TR Loss $100 $0 $100 $100 $100 $180 3 $100 $300 $100 $440 $100 $600 6 $100 $780 a. Complete the table. b. At what output rate does the firm maximize profit or minimize loss? c. What is the firm's marginal revenue at each positive level of output? Its average revenue? d. What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit-maximizing (or loss- minimizing) rate? 012 m45

8-2 Determine the perfectly competitive firm's profit-maximizing output in the short run (Short-Run Profit Maximization) A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $150. 4. Profit/ Output FC VC TC TR Loss $100 $0 $100 $100 $100 $180 3 $100 $300 $100 $440 $100 $600 6 $100 $780 a. Complete the table. b. At what output rate does the firm maximize profit or minimize loss? c. What is the firm's marginal revenue at each positive level of output? Its average revenue? d. What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit-maximizing (or loss- minimizing) rate? 012 m45

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please read the question as i have uploauded a question with the same table but different question thank you
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