profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average reven -.1000, average total cost of Rs.800, and fixed cost of Rs.20,000. What is its profit? -)What is its marginal cost? =) Is the efficient scale of the firm more than, less than, or exactly 100 units?

profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average reven -.1000, average total cost of Rs.800, and fixed cost of Rs.20,000. What is its profit? -)What is its marginal cost? =) Is the efficient scale of the firm more than, less than, or exactly 100 units?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 10MC

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