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Suppose that a perfectly competitive firm faces a market price of $10 per unit, and at this price the upward-sloping portion of the firm's marginal
Suppose that a perfectly competitive firm faces a market price of $10 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an outp 1,200 units. If the firm produces 1,200 units, its average variable costs equal $6.50 per unit, and its average fixed costs equal $0.50 per unit. What is the firm's profit-maximizing (or loss-minimizing) output level? (Enter your response as a whole number - include the minus sign if necessary) What is the amount of its economic profits (or losses) at this output level? $ (Enter your response as a whole number - include the minus sign if necessary)
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