Suppose that a perfectly competitive firm faces a market price of $12 per unit, and at...

Transcribed Image Text:

Suppose that a perfectly competitive firm faces a market price of $12 per unit, and at this price the upward-sloping portion of the firm's man units. If the firm produces 1,800 units, its average variable costs equal $7.00 per unit, and its average fixed costs equal $1.00 per unit. What is the firm's profit-maximizing (or loss-minimizing) output level? (Enter your response as a whole number-include the minus sign if necessary.) Suppose that a perfectly competitive firm faces a market price of $12 per unit, and at this price the upward-sloping portion of the firm's man units. If the firm produces 1,800 units, its average variable costs equal $7.00 per unit, and its average fixed costs equal $1.00 per unit. What is the firm's profit-maximizing (or loss-minimizing) output level? (Enter your response as a whole number-include the minus sign if necessary.)

Answer rating: 100% (QA)

In a perfectly competitive market a firm can sell any quantity it wants at the market price Therefor... View the full answer