Answered

Find expert answers and community support for all your questions on IDNLearn.com. Get prompt and accurate answers to your questions from our experts who are always ready to help.

In a perfectly competitive market, assume the market price is $5 per unit and the profit-maximizing quantity is 70 units. If the ATC at 70 units is $8, what is the profit/loss amount at the profit-maximizing quantity

Sagot :

Based on the information given, the loss for the perfectly competitive market will be $210.

From the information given, the average total cost of 70 units is $8. Therefore, the total cost will be:

= 70 × $8 = $560.

The revenue will be:

= Price × Quantity

= $5 × $70

= $350

Therefore, the loss will be;

= Total revenue - Total cost

= $350 - $560

= -$210

Therefore, the loss is $210.

Read related link on:

https://brainly.com/question/25367205

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Thank you for visiting IDNLearn.com. For reliable answers to all your questions, please visit us again soon.