A profit maximizing firm operating under conditions of perfect competition is producing daily output such that revenue is K5000. The firm’s average total cost is K8, its marginal cost is K10 and its average variable cost is K5. a) What is the firms daily output?  b) How much profit is the firm making?  c) How much are the daily fixed costs?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A profit maximizing firm operating under conditions of perfect competition is producing daily output such that revenue is K5000. The firm’s average total cost is K8, its marginal cost is K10 and its average variable cost is K5.
a) What is the firms daily output? 
b) How much profit is the firm making? 
c) How much are the daily fixed costs? 

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