Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.Max Profit Inc, a profit maximizing firm in a competitive market is currently producing 1000 units of widgets.It has average revenue of $100, average total
1.Max Profit Inc, a profit maximizing firm in a competitive market is currently producing 1000 units of widgets.It has average revenue of $100, average total cost of $80 and fixed cost of $2,000.
a.What is its profit?
b.What is its marginal cost?
c.What is its average variable cost?
d.Is the efficient scale of the firm more than, less than, or exactly 1000 units?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started