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5 Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units per year. Your marginal cost is Rs.
5 Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units per year. Your marginal cost is Rs. 10 per chip up to capacity. You have fixed cost Rs. 10000, if production is positive and Rs. 0 if you shut down. What are your profit maximizing levels of production and profit if market price is (a) Rs. 5 per chip (b) Rs. 15 per chip and (c) Rs. 25 per chip.
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