Question

A profit-maximizing firm in a competitive market is currently producing 100 units of output

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200.

a. what is the profit?
b. what is the marginal cost?
c. what is its average variable cost?
d. is the efficent scale of the firm more than, less than, or equal to 100 units?

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