For a firm A which is operating under Pure Competition; Under Total Revenue-Total Cost Approach;

Total Revenue Total Cost Approach
Total Product (Output) (Q)	Total Fixed Cost (TFC)	Total Variable Cost (TVC)	Total Cost (TC)	Average Total Cost ATC	Marginal Cost MC	Total Revenue (TR)	Profit (+) or Loss (-)
0	40	0	40			0
1	40	20	60			40
2	40	30	70			80
3	40	55	95			120
4	40	70	110			160
5	40	140	180			200
6	40	210	250			240
7	40	310	350			280

1. Fill in the table above by calculating the Total fixed cost Average total cost, Marginal cost total revenue and the profit/loss for each level of output. Assume the price of the product P= $40.
2. Indicate the level of Output where Profit is Maximized?

3. What is the Maximum Profit for Firm A?

 

Answer rating: 100% (QA)

To fill in the table and answer the questions well use the Total RevenueTotal Cost Approach and the ... View the full answer