At the short-run break-even point, the perfectly competitive firm is producing how many units of output at the market price of 150$? Furthermore how many units of output will the firm produce to maximize profit in the short run? Specify the amount of economic profit or loss for the firm
Output (Q)
Total Fixed Costs (TFC) ($)
Total Variable Costs (TVC) ($)
1
100
120
2
100
200
3
100
290
4
100
430
5
100
590
At the short-run break-even point, the perfectly competitive firm is producing how many units of output at the market price of 150$? Furthermore how many units of output will the firm produce to maximize profit in the short run? Specify the amount of economic profit or loss for the firm
| Output (Q) | Total Fixed Costs (TFC) ($) |
Total Variable Costs (TVC) ($) |
| 1 | 100 | 120 |
| 2 | 100 | 200 |
| 3 | 100 | 290 |
| 4 | 100 | 430 |
| 5 | 100 | 590 |
Related textbook solutions
Related questions
Assume that a firm in a perfectly competitive market can sell its product for $35 (ie price per unit of output). Furthermore, it faces the following costs:
| Output (Q) | Total Cost |
| 0 | 25 |
| 1 | 50 |
| 2 | 100 |
| 3 | 120 |
| 4 | 155 |
| 5 | 190 |
| 6 | 250 |
| 7 | 390 |
a) Calculate Total revenue (TR), Marginal Cost (MC), Fixed Cost (FC), Variable cost (VC), and Average Cost (AC).
b) What is the profit-maximizing output level?
c) Is this firm is making a profit or loss at the profit-maximizing output level? Explain.
d) Do you think the firm will continue its production in the short run?
e) What will be the long-run price in this market?
You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table:
| Q | TVC |
| 0 | 0 |
| 1 | 100 |
| 2 | 175 |
| 3 | 225 |
| 4 | 305 |
| 5 | 415 |
| 6 | 360 |
Complete the following table: Market Price (Profit maximizing level of output) (Profit)
$70
$77
$85
$105
