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Price, total cost and the Average total cost

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Suppose a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC=$24. Also the firm has a constant marginal cost, MC=$3. Demand for the product that the firm produces is given by P=27-3Q. The chart labels the quantity of output 1-9. I need to find the Price, total cost and the Average total cost. I also need to find how much output the firm will produce if it maximizes its profits,and what price the firm should charge if it wants to maximize profits.

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Price, total cost and the average total cost in this case are solved in the solution.

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Chidi Ngene, M. Sc.
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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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