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. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 100 units.
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. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 100 units.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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![7. Problems and Applications Q7
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.
Complete the following table by indicating the firm's profit, marginal cost, and average variable cost.
Profit
Marginal Cost
Average Variable Cost
(Dollars)
(Dollars)
(Dollars)
The efficient scale of the firm must be
v 100 units,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7bbcd5e-f985-466d-ab4f-b6b596b64f0a%2F691ea1a6-045c-41b1-86bd-786cd6162993%2Fafzbka5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. Problems and Applications Q7
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.
Complete the following table by indicating the firm's profit, marginal cost, and average variable cost.
Profit
Marginal Cost
Average Variable Cost
(Dollars)
(Dollars)
(Dollars)
The efficient scale of the firm must be
v 100 units,
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