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alexira [117]
3 years ago
7

A profit-maximizing firm in a competitive market is able to sell its product for $7. At its current level of output, the firm's

average total cost is $10. The firm’s marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27.
b. profit of exactly $27.
c. loss of more than $27.
d. loss of exactly $27.
Business
1 answer:
ser-zykov [4K]3 years ago
4 0

Answer:

d. loss of exactly $27.

Explanation:

Under a competitive firm, a profit-maximizing firm level of output can be find out by equating the marginal revenue with its marginal cost i.e

Marginal revenue = Marginal cost

As we know that

Average total cost = Total cost ÷ Quantity

$10 = Total cost ÷ 9

So, the total cost is

= $10 × 9

= $90

And,

Total revenue = Price  ×  quantity

= $7 × 9

= $63.

So,

Profit = Total revenue - total cost

= $63 - $90

= -$27

This amount comes in a negative which reflects that there is a loss of $27

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Suppose country X partially specializes in the production of only two goods, food and clothing. At the initial free trade equili
alekssr [168]

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1 year ago
Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ g
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7 0
3 years ago
According to Ari Wallach, what is short-termism, and why is it a problem?
Ostrovityanka [42]

Answer:

<em><u>short-termism </u></em>

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<em><u>How does Wallach relate the future to a part of speech? </u></em>

Wallach make a link between Thomas Khun quote: “People don’t shift unless they have a vision of what it is they’re shifting to.” an Martin Luther King Speech of "I Have a Dream" he says that that speech is successful as it shows what is the vision of what a dream must looks like

3 0
2 years ago
What is Equity financing
MakcuM [25]
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