A firm operates in a competitive industry, in which the price is $8 per unit. Its fixed cost is $10 and its variable costs are given in the table. Compute the firm's revenues and costs for output over the range 0 to 8 units. Determine the profit-maximizing level of output for the firm. If this firm is typical of the industry, will entry occur? Explain why or why not.
$\begin{array} { | c | c | }
\hline \text { Output } & \text { Variable cost } \
\hline 1 & 2 \
\hline 2 & 3 \
\hline 3 & 5 \
\hline 4 & 10 \
\hline 5 & 16 \
\hline 6 & 24 \
\hline 7 & 35 \
\hline 8 & 48 \
\hline
\end{array}$

Question

A firm operates in a competitive industry, in which the price is $8 per unit. Its fixed cost is $10 and its variable costs are given in the table. Compute the firm's revenues and costs for output over the range 0 to 8 units. Determine the profit-maximizing level of output for the firm. If this firm is typical of the industry, will entry occur? Explain why or why not.
 $\begin{array} { | c | c | } 
\hline \text { Output } & \text { Variable cost } \
\hline 1 & 2 \
\hline 2 & 3 \
\hline 3 & 5 \
\hline 4 & 10 \
\hline 5 & 16 \
\hline 6 & 24 \
\hline 7 & 35 \
\hline 8 & 48 \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of A firm operates in a competitive industry, in which the price is $8 per unit. Its fixed cost is $10 and its variable costs are given in the table. Compute the firm's revenues and costs for output over the range 0 to 8 units. Determine the profit-maximizing level of output for the firm. If this firm is typical of the industry, will entry occur? Explain why or why not.
 $\begin{array} { | c | c | } 
\hline \text { Output } & \text { Variable cost } \
\hline 1 & 2 \
\hline 2 & 3 \
\hline 3 & 5 \
\hline 4 & 10 \
\hline 5 & 16 \
\hline 6 & 24 \
\hline 7 & 35 \
\hline 8 & 48 \
\hline
\end{array}$

A Firm Operates in a Competitive Industry, in Which the Price