Scenario 13-2
Assume a certain firm is producing Q = 1,000 units of output.At Q = 1,000,the firm's marginal cost equals $20 and its average total cost equals $25.The firm sells its output for $30 per unit.
-Refer to Scenario 13-2.At Q = 999,the firm's profits equal

Question

Quizplus · Accepted Answer

At Q = 999, the firm loses $30 in revenue (price per unit) but saves $20 in cost (marginal cost), resulting in a net loss of $10. At Q = 1,000, profit is (30-25)*1,000 = $5,000. Therefore, at Q = 999, profit is $5,000 - $10 = $4,990.

Scenario 13-2 Assume a Certain Firm Is Producing Q = 1,000 Units