A perfectly competitive firm has total revenue of $10,000 from its daily output. That output is the profit-maximizing output. The firm's average cost is $15, its marginal cost is $20, and its average variable cost is $10. What is the profit the firm is making at this output level? What total variable costs does it incur? Its total fixed costs?

A perfectly competitive firm has total revenue of $10,000 from its daily output. That output is the profit-maximizing output. The firm's average cost is $15, its marginal cost is $20, and its average variable cost is $10. What is the profit the firm is making at this output level? What total variable costs does it incur? Its total fixed costs?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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