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To calculate profit and loss

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

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

If the product price is $95, 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.

Solution Preview

Total Product TFC TVC MC
0 $150 $0
1 150 70 70
2 150 120 50
3 ...

Solution Summary

This post shows how to calculate profit and loss if the product price is $95 at optimal output.

$2.19