Explain is the firm making a profit or a loss

Reference no: EM13239308

A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100, marginal cost equals $40, and average fixed cost equals $10. To maximize profit, the firm should produce a smaller output and sell it at a higher price. (Hint: Is the firm making a profit or a loss? If it is losing money, should it continue producing or should it shut down?)

Reference no: EM13239308

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