Question
A firm in a perfectly competitive market faces the following conditions: Average total cost = $70 Average variable cost = $50 Marginal cost = $65
A firm in a perfectly competitive market faces the following conditions:
Average total cost = $70
Average variable cost = $50
Marginal cost = $65
Marginal revenue = $65
Quantity = 30
(a)How much is the AFC? Calculate the TFC.
(b)Calculate the profit or loss made by the firm.
(c)Should the firm continue to operate or shut down? Explain.
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
