The graph on the right presents the costs and revenue for a purely competitive f

Question

The graph on the right presents the costs and revenue for a purely competitive firm, where the market price is equal to $300 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the profit-maximizing output and profit for this firm

Map C Sapling Learning The graph on the right presents the costs and revenue for a purely competitive firm, where the market price is equal to $300 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the profit-maximizing output and profit for this firm. 2400 1. What is the profit-maximizing output of Marginal Cos this purely competitive firm? (Round your 2200 answer to the nearest whole number.) 2000 Average Total Cost Number 1800 Units of output 1600 1400 2000 2. What is the maximum level of profits for R 1000 this purely competitive firm? (Round your 800 answer to the nearest positive or negative verage Variable Cost whole number.) 600 400 Number Marginal Revenue 200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Units of Output

Explanation / Answer

Units produced = 0 (Price is below the shutdown point i.e. minimum average variable cost, the firm would not produce)

Loss = Fixed cost = $ 3600 (as there is no production)

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