QUESTION 16 5 points Save Answer Answer the next question(s) on the basis of the

Question

QUESTION 16 5 points Save Answer Answer the next question(s) on the basis of the following cost data for a firm that is selling in a purely competitive market: Average Average Average Variable Cost $100.00 $17.00 $117.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 Total Cost Total Fixed Product Cost Marginal Cost $17 15 13 12 13 2 3 4 5 6 7 8 9 10 50.00 33.33 25.00 20.00 16.67 14.29 12.50 66.00 48.33 39.25 34.00 30.67 30.00 30.00 30.55 31.60 33.09 35.00 26 30 35 41 48 56 10.00 9.09 8.33 12 Refer to the above data. If the market price for a perfectly competitive firm's product is $36, the competitive firm will produce 8 units at an economic profit of $48 9 units and profit is equal to $49 12 units and its loss is $12. 7 units at an economic profit of $35.00

Explanation / Answer

Solution:
B)9 units because P > MC at this unit

Profit = TR - TC = PxQ - 30.55 x 9 = 36 x 9 - 30.55 x 9 = 9(36 - 30.55) = 49.05

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