At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per

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At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average total cost is $6 per unit, what will be the firm’s profit?
What is the relationship between profit, price, and average total cost?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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