Question

The following table gives the average total cost of production for various levels of output for...

The following table gives the average total cost of production for various levels of output for a competitive firm:

Q

ATC

0

--

1

10

2

  8

3

  7

4

  8

5

10

If the firm's fixed cost of production is $3 and the market price is $10, how many units should the firm produce to maximize its profit?

0 0
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Answer #1

Ssce total Gs CTC) fico CFC) tanableas +CvC AFC) AN. PARCoSt fuonky ( Aut. Vena ble Cost (AvC) Av. total Cas (ATCHenfporal ast (mcChorge in T chargeurality ATE XG Jotal (St CTCHoe FC $3 ien ard Fc is ha Same ale Par all the aututr 12 Ve TC ATC $20$3 10-3 1-0 332 3 16-10 6 16 2-12 13 21-16 2 3 13 21

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