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    Pure competition: Economic profit, break even, economic loss, profit or loss

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    Answer the next questions on the basis of the following cost data for a firm in pure competition:

    OUTPUT ------ TFC ---------- TVC
    0 $100.00 0.00
    1 100.00 70.00
    2 100.00 120.00
    3 100.00 150.00
    4 100.00 220.00
    5 100.00 300.00
    6 100.00 390.00

    If the product price is $75, at its optimal output,

    a) Will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be?

    b) If the product price is $100, 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 all calculations.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:38 am ad1c9bdddf
    https://brainmass.com/business/business-management/pure-competition-economic-profit-break-even-economic-loss-profit-or-loss-350296

    Solution Preview

    I will create another column named marginal cost, it is simply the different between TVCs

    OUTPUT ------ TFC ---------- TVC MC
    0 $100.00 0.00 0
    1 ...

    $2.19

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