Refer to the accompanying table. A firm participating in a competitive market with these costs would make a profit if the price is Price Average Fixed Cost Average Variable Cost $2 $6 $2 $1 $0.30 $9 $4 $2 $5 $7 $8 O $2 $4 O$5 $7

Refer to the accompanying table. A firm participating in a competitive market with these costs would make a profit if the price is Price Average Fixed Cost Average Variable Cost $2 $6 $2 $1 $0.30 $9 $4 $2 $5 $7 $8 O $2 $4 O$5 $7

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below shows the price and cost information for a firm that operates in a perfectly competitive market. Based on this information, what is the profit-maximizing output quantity? Price Quantity Total Cost $8 $8 $8 $8 $8 $8 $8 $6 $10 $15 $21 $28 $35 $45 1 2 3 4 5 6 Profit is maximized at a quantity of type your answer. units, where it is equal to $ type your answer. Is the long run price in this market likely to be higher or lower than the current price of $8? type your answer.
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