Asked by Ellen Likens on Jul 09, 2024
Verified
A competitive firm is maximizing its profit by selling 150 units of output. The firm's marginal cost is $8 and its average total cost is $6. The firm's profit amounts to __________.
Marginal Cost
The increase in total production costs resulting from the production of one additional unit of a product or service.
Average Total Cost
The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.
Profit
The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.
- Describe the methodology employed by companies within perfectly competitive markets to decide on their production and operational activities.
- Determine and explain the overall revenue and profit margins using detailed sales and cost data for an enterprise operating in a competitive environment.
Verified Answer
Learning Objectives
- Describe the methodology employed by companies within perfectly competitive markets to decide on their production and operational activities.
- Determine and explain the overall revenue and profit margins using detailed sales and cost data for an enterprise operating in a competitive environment.
Related questions
A Restaurant, Which Operates in a Perfectly Competitive Market, Is ...
When It Produces 500 Units of Output, a Firm Earns ...
A Profit-Maximizing Competitive Firm Is Earning a Profit of $24,000 ...
A Ski Resort Will Choose to Remain Open in the ...
A Competitive Firm Currently Produces and Sells 500 Units of ...