Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnes Average total cost = $627 per tonne Average variable cost = $614 per tonne Marginal revenue = $620 per tonne Marginal cost = $620 per tonne At 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.
Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnes Average total cost = $627 per tonne Average variable cost = $614 per tonne Marginal revenue = $620 per tonne Marginal cost = $620 per tonne At 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.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 7PA
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Q23
Suppose a perfectly competitive firm is currently operating with the following information:
Output = 1500 tonnes
Average total cost = $627 per tonne
Average variable cost = $614 per tonne
Marginal revenue = $620 per tonne
Marginal cost = $620 per tonne
At the current level of output, this firm is _____ profit and is an earning economic profit of _____.
Output = 1500 tonnes
Marginal revenue = $620 per tonne
Marginal cost = $620 per tonne
At 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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