Order the answer to: Suppose that a perfectly competitive…
| Question | Suppose that a perfectly competitive firm has the following total variable costs (TVC): It also has total fixed costs (TFC) of $6. If the market price is $5 per unit: a. Find the firm’s profit-maximizing quantity using the marginal revenue and marginal cost approach. b. Check your results by re-solving the problem using the total revenue and total cost approach. Is the firm earning a positive profit, suffering a loss, or breakingeven? |
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| Subject | business-economics |
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