3. The following graph shows cost curves for a perfectly competitive firm. The market price of each unit of output is $2.60, Find the firm's profits when it produces 800 units of output. Is this output optimal? Explain your answer. MC 2.60 ATC AVC 1.60 1,50 0.80 0.70 0.60 500 800 1100 OUTPUT Price and costs (dallars)

3. The following graph shows cost curves for a perfectly competitive firm. The market price of each unit of output is $2.60, Find the firm's profits when it produces 800 units of output. Is this output optimal? Explain your answer. MC 2.60 ATC AVC 1.60 1,50 0.80 0.70 0.60 500 800 1100 OUTPUT Price and costs (dallars)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 1PA

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