At its current level of production a profit-maximising firm in a competitive market receives R12.50 for each unit it produces and faces an average total cost of R10. At the market price of R12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1 000 units. What is the firm's current profit? What is likely to occur in this market and why?

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The Answer of At its current level of production a profit-maximising firm in a competitive market receives R12.50 for each unit it produces and faces an average total cost of R10. At the market price of R12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1 000 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