All #8 Provide a bref explanation for each of your answer!! in a competitive mar

Question

All #8
Provide a bref explanation for each of your answer!! in a competitive market receives $500 in total revenue and has marginal revenue of $10. What is the average revenue, and how many units were sold? 8. A profit maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200 a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than less than, or exactly 100 units? 9. The market for fertilizer is perfectly competitive

Explanation / Answer

7) in competitive market MR=AR. so AR=10, TR=500. so Q=500/10=50

8) profit= TR-TC= 100*(10-8)= 200

MC=8

TC=100*8=800, FC=200. so VC=600. AVC=600/100=6

efficient scale is more than 100 units because profit is positive

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