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A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $ 10, average total cost of $ 8, and fixed cost of $ 200.a. What is its profit?b. What is its marginal cost?c. What is its average variable cost?d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
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Suppose a firm is maximizing profits in the short run with variable factor x1 and fixed factor x2 . If the price of x2 goes down, what happens to the firm's use of x1 ? What happens to the firm's level of profits? | Numerade
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