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Costs, Outputs, and Profits

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Instructions for Homework #5: A Perfect Competitive Firm: Costs, Outputs, and Profits
The following graph represents a perfect competitive firm operating in the short-run. Please answer the following questions based on the information from the graph. Please show all your work to get full credits.
a. Please determine the firm's profit maximization output level Q*.
b. At the determined output level Q* is the firm profitable? Please show the firm's profit or loss.
c. Could you figure out the firm's total fixed cost? If so, how much is the firm's total fixed cost? (Show your detailed calculation)

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Instructions for Homework #5: A Perfect Competitive Firm: Costs, Outputs, and Profits
The following graph represents a perfect competitive firm operating in the short-run. Please answer the following questions based on the ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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