A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm's marginal cost curve. At that output level, it has the following costs and revenues:

TC = $830,000

VC = $525,000

TR = $428,000

1. Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns.

2. If this firm is a rational, profit-maximizing firm, what level of output will it produce?

3. At that optimal level of output, what profit (loss) does the firm earn?