The graph on the right presents the costs and revenue for a purely competitive ?rm, where the market price is equal to $600 per unit of output. Use this information to determine the profit-maximizing output and profit for this firm.

1. What is the profit-maximizing output of this purely competitive firm? (Round your answer to the nearest whole number.)

2. What is the profit (loss) for this purely competitive firm? (Round your answer to the nearest whole number.)

Transcribed Image Text:

Number 0 Units of Output Number $0 Cost and Revenue (5) 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Marginal Revenue Average Total Cost Marginal Cost Average Variable Cost 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Units of Output Number 0 Units of Output Number $0 Cost and Revenue (5) 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Marginal Revenue Average Total Cost Marginal Cost Average Variable Cost 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Units of Output

Answer rating: 100% (QA)

In pure competition Price Marginal Revenue 600 1 Pro... View the full answer