Question
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?
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
