Use the accompanying figure for a firm in a perfectly competitive market. What is the output that maximizes the firm’s profit? At the profit-maximizing output, calculate total revenue and total cost. If the firm maximizes profit, how much profit does it earn? What will likely happen to market demand or market supply in the long run? What will likely happen to the market price in the long run?

Answer rating: 100% (QA)

Loss Profit Loss 800 Total cost ... View the full answer