Fill the gap with words bellow At its current level of production a profit-maximizing firm in a competitive marketfaces an average total cost of $10. At the market price of $12.50 per unit, thefirm's marginal cost curve crosses the marginal revenue curve at an output levelof 1,000 units.From the above information, we may infer that the firm currently producesunits and its current profit is $In the long run, the market equilibrium price is likely tobecause more producers will bethe market. The long-runprofit of all firms in this market will finally2500become zero.10,000exitingdecreaseincreaserise twicemore than 1,00012500enteringremain unchangedeconomicless than 1,000exactly 1000accountingstabilize at positive levels.

ATC = 10 $ Market price = 12.50 $ Output = 1000 units Profit maximizing condition for competitive…

Answered: Fill the gap with words bellow

Business

Economics

Fill the gap with words bellow

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
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