Question
A firm is currently producing 50 units of output. At this level output produced: - Its...
A firm is currently producing 50 units of output. At this level output produced:
- Its average total cost is 140 (ATC = 140)
- The market price per unit of outputs is 160
- MR=40
- MC=60
a) Is this firm making profit or loss? How much?
b) Are they maximum profits? Why?
c) If your answer to part b was NO, what does this firm have to do to maximize profits?
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Answer #1
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