Profit-maximizing firm in competitive market

Assignment Help Business Economics

Reference no: EM13892155

At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1000 units. What is the firm's current profit? What is likely to occur in this market and why?

Reference no: EM13892155

Questions Cloud

Are the charge back levels of fees ethical : Is there a problem with unconscionability? Is this kind of behavior anticompetitive? Do you feel the guidelines and chargeback fees are truly negotiable? Are the chargeback levels of fees ethical?

Using the ppc as springboard for your analysis : Using the PPC as a springboard for your analysis, what effect would forgoing consumption today in order to invest for tomorrow have on future production possibilities? Now consider the choices our government faces when it has limited tax revenues to ..

Will the household be better or worse off : Suppose the average household in a state consumes 800 gallons of gasoline per year. A .20 tax is introduced coupled with a $160 annual tax rebate per household. Will the household be better or worse off?

Most capable students pursuing medical careers : "High salaries are essential if we are to have the most capable students pursuing medical careers" Comment- Why or why not?

Profit-maximizing firm in competitive market : At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the ..

Fixed costs exist only in the short run : Explain the statement: "Fixed costs exist only in the short run. In the long run there are no fixed costs." Why might the time frame for the "short run" differ from one industry to the next? Provide examples of two industries with different time fram..

Some other challenge in supply-demand you have encountered : Consider the challenge of supplying all the merchandise to a bigbox store such as Target, or some other challenge in supply and demand you have encountered. Discuss with your class members some of the continual problems and variables that go into the..

Profit from sale of products to four-square to remodel : Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol. Delta will realize a p..

According to the way the government measures unemployment : Here's a story economists tell one another: A Nobel Price-winning economist flew to New York City for a conference. He got into a cab, and started talking with the cab driver. The cab driver said, "Oh, you're an economist? Let me tell you, this econo..

User Account

All Pages