Explore BrainMass
Share

Explore BrainMass

    At optimal output, calculate the profit, break even or loss.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Answer the question below on the basis of the following cost data for a purely competitive seller:

    Total Product TFC TVC
    0 $50 $0
    1 50 70
    2 50 120
    3 50 150
    4 50 220
    5 50 300
    6 50 390

    If the product price is $60, at its optimal output will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show calculations.

    © BrainMass Inc. brainmass.com October 10, 2019, 1:37 am ad1c9bdddf
    https://brainmass.com/business/business-management/at-optimal-output-calculate-the-profit-break-even-or-loss-342237

    Solution Preview

    Total Product TFC TVC MC
    0 $50 $0
    1 50 70 70
    2 ...

    Solution Summary

    This post shows how to calculate the profit and loss at optimal output.

    $2.19