A competitive firm is confronted with a price of $4.00 per unit for its output. The marginal cost of production for this firm increases by 50 cents for each additional unit of output produced. That is, The Marginal cost of the first unit produced is 50 Cents; the marginal cost of the second unit is $1.00; of the third, $1.50. etc. It is known that at the profit-maximizing output, this firm has average total costs of production of $2.50. From the information provided what is

a. Profit

b. Marginal Revenue

c. Marginal Cost

d. Total Revenue

e. Total Cost

Answer rating: 100% (QA)

In a perfectly competitive market ARPMR4 Marginal cost MC 12 Q from question Now at equilibrium M... View the full answer