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A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues:             TC = $830,000             VC = $525,000             TR = $428,000   Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns.

A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues:             TC = $830,000             VC = $525,000             TR = $428,000   Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues:

            TC = $830,000

            VC = $525,000

            TR = $428,000

 

  1. Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns.

is it Profit=TR-TC?

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