6. $12 10 8 6 4 2 0 200 400 600 Output Marginal cost per unit 800 Average cost per unit Average revenue per unit Marginal revenue per unit 1000 For the firm whose costs and revenues are shown in the above graph, (a) profits will be maximized at a level of output of units, and (b) at this level of output, profits will be $ (Show your calcula- tions.) The Costs and Revenues of the Firm (c) Is this firm operating in a perfectly competitive market? If this firm is in a perfectly competitive industry and is a typical firm which is making profits, what adjustment will occur in the price of the product, and how will this affect the profits of the typical firm? What will the final equilibrium level of the price be? 183