At its current level of production, a profit-maximising firm in a competitive market receives $12.50 for each unit it produces, and faces an average total cost of $10.At the market price of $12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1000 units.What is the firm's current profit? What is likely to occur in this market and why?

Question

Quizplus · Accepted Answer

The Answer of At its current level of production, a profit-maximising firm in a competitive market receives $12.50 for each unit it produces, and faces an average total cost of $10.At the market price of $12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1000 units.What is the firm's current profit? What is likely to occur in this market and why?

At Its Current Level of Production, a Profit-Maximising Firm in a Competitive