Scenario 13-1
Assume a certain firm in a competitive market is producing Q = 1,000 units of output.At Q = 1,000,the firm's marginal cost equals $15 and its average total cost equals $11.The firm sells its output for $12 per unit.
-Refer to Scenario 13-1.At Q = 999,the firm's profits equal

Question

Quizplus · Accepted Answer

To determine the profit at Q = 999, we need to calculate the total revenue, total cost, and then subtract total cost from total revenue. 
Total revenue = price per unit x quantity = $12 x 999 = $11,988 
Total cost = average total cost per unit x quantity = $11 x 999 = $10,989 
Profit at Q = 999 = total revenue - total cost = $11,988 - $10,989 = $999 
Therefore, the answer is C, $1,003, which is the closest option to $999.

Scenario 13-1 Assume a Certain Firm in a Competitive Market Is Producing