!!! Assignment Score Available After Due Date < Question 3 of 10 > Macmillan Learning Press Esc to exit full screen The accompanying graph illustrates a perfectly competitive firm's total revenue (TR) curve and total cost (TC) curve. The firm produces sneakers, so assume it can only produce whole units of sneakers (e.g., it can produce 5 or 6 sneakers but not 5.5 sneakers). Move the maximum profit line by adjusting its endpoints to represent the maximum profit the firm can possibly earn. When the firm is producing 4 sneakers, profit is less than when the firm is producing 9 sneakers. When the firm is producing 2 sneakers, profit is less than when the firm is producing 8 sneakers. 20 19 18 17 16 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 € 3 Resources may profit 4 5 6 7 Quantity 8 TR TC 9 Retake 10

!!! Assignment Score Available After Due Date < Question 3 of 10 > Macmillan Learning Press Esc to exit full screen The accompanying graph illustrates a perfectly competitive firm's total revenue (TR) curve and total cost (TC) curve. The firm produces sneakers, so assume it can only produce whole units of sneakers (e.g., it can produce 5 or 6 sneakers but not 5.5 sneakers). Move the maximum profit line by adjusting its endpoints to represent the maximum profit the firm can possibly earn. When the firm is producing 4 sneakers, profit is less than when the firm is producing 9 sneakers. When the firm is producing 2 sneakers, profit is less than when the firm is producing 8 sneakers. 20 19 18 17 16 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 € 3 Resources may profit 4 5 6 7 Quantity 8 TR TC 9 Retake 10

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 13P

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Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
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