1.)Consider once again a profit-max, perfectly competitive firm. Its total reven

Question

1.)Consider once again a profit-max, perfectly competitive firm. Its total revenue is $484,000. If it sells one more unit, its total revenue will be $484,220. At the quantity the firm is producing, marginal cost must be $______ (carefully follow all numeric instructions; enter 99999 if you don't have enough information to answer the question.)

2.)When a perfectly competitive firm seeking to max profits produces its current level of output its marginal revenue is $2 and its marginal cost is $3. Therefore

3.)In the long run, if price is greater than average total cost within a perfectly competitive market, then

(You can assume firms have no implicit costs for this question.)

Explanation / Answer

1)

we know profit-max, perfectly competitive firm quantity is when marginal cost = marginal revenue(MR)

Marginal revenue = new revenue from one more unit - revenue before one unit addition=484220-484000=220

so marginal cost=220=MR as we need pprofit-max quantity.

so answer is MC=220

we do only first question as per chegg guidlines. Please ask others again. Thanks..............

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