A competitive firm is maximizing its profit by selling 150 units of output. The firm's marginal cost is $8 and its average total cost is $6. The firm's profit amounts to __________.

Marginal Cost

The increase in total production costs resulting from the production of one additional unit of a product or service.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Describe the methodology employed by companies within perfectly competitive markets to decide on their production and operational activities.
Determine and explain the overall revenue and profit margins using detailed sales and cost data for an enterprise operating in a competitive environment.

Verified Answer

Final Answer :

$300

Learning Objectives

Describe the methodology employed by companies within perfectly competitive markets to decide on their production and operational activities.
Determine and explain the overall revenue and profit margins using detailed sales and cost data for an enterprise operating in a competitive environment.