A perfectly competitive firm has total revenue of $10,000 from its daily output. That output is the profit-maximizing output. The firm's average cost is $15, its marginal cost is $20, and its average variable cost is $10. What is the profit the firm is making at this output level? What total variable costs does it incur? Its total fixed costs?

A perfectly competitive firm has total revenue of $10,000 from its daily output. That output is the profit-maximizing output. The firm's average cost is $15, its marginal cost is $20, and its average variable cost is $10. What is the profit the firm is making at this output level? What total variable costs does it incur? Its total fixed costs?

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 2PA

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