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given the data in the table belowwhat is the short run profit maximizing level of output

Given the data in the table below, what is the short-run profit-maximizing level of output for the perfectly competitive firm
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Answer #1

Condition for short-run profit maximization in a perfectly competitive market is Marginal Revenue MR = Marginal Cost MC.

Here, MRn=TRn-TRn-1 and MCn=TCn-TCn-1

Now, MR is equal to 4 at each output level whereas, MC is equal to 4 at output level of 4 units.

Thus, Profit maximization level of output in the short run is 4 units.

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