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anygoal [31]
3 years ago
11

"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_______________"
Business
1 answer:
AleksAgata [21]3 years ago
4 0

Answer:

d. loss of exactly $27.

Explanation:

The profit maximizing level is the level at which the marginal revenue equal to the marginal cost

In mathematically,

Marginal revenue = Marginal cost

Given that

Sale price = $7

Average total cost = $10

Output level = 9 units

We know that

Average total cost = Total cost ÷ Quantity

$10 = Total cost ÷ 9 units

So, the total cost is $90

And, the

Total revenue = Price × Quantity

= $7 × 9 units

= $63

Now the profit or loss is

= Total revenue - Total cost

= $63 - $90

= -$27

This -$27 reflects the loss

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Answer:

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3 0
3 years ago
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Dominik [7]

Answer:

The answer is stated below:

Explanation:

The challenges which one would face and these are:

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5 0
3 years ago
A stock had returns of 18.58%, -5.58%, and 20.81% for the past three years. What is the variance of returns?
NemiM [27]

Answer:

Variance = 0.02141851

Explanation:

We first calculate the mean for the stocks

Mean = (0.1858 - 0.0558 + 0.2081) / 3

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Variance = [(0.1858 - 0.1127)^2 + (- 0.0558 - 0.1127)^2 + (0.2081 - 0.1127)^2] / 3 -1

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Answer:

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4 0
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