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juin [17]
2 years ago
4

A monopolistically competitive firm is currently producing 10 units of output. At this level of output the firm is charging a pr

ice equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12. From this information we can infer that
Business
1 answer:
Andre45 [30]2 years ago
7 0

We can infer from the given information that the firm is currently maximizing its profit.

The firm is currently maximizing profit because the marginal revenue is equal to the marginal cost at $6.

This means that the last unit which is  produced gives zero marginal profit and producing more units  will cause a  huge decrease in profit. The profit of the firm is positive.

Profit = (Price- Average total cost) * units produced

Profit = ($10-$6)*10

Profit= ($4)*10

Profit= 40$

The average total cost of the production is less than the price. It will not leave the market in the long run if the price is either  greater or equal to the average total cost. The firm will not incurr any  losses in the long run.

To know more about marginal cost= marginal revenue here:

brainly.com/question/21591162

#SPJ4

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