Purchase Solution

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

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

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

Solution Preview

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

Purchase this Solution

Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations