A firm maximizes its profit by selling 2,500 units of output with an average revenue of $6.99. The firm's marginal cost at 2,500 units of output is __________.

Marginal Cost

The escalation in cumulative price involved in fabricating one extra unit of a product or service.

Average Revenue

The amount of income generated per unit of sale or service offered, calculated by dividing total revenue by the number of units sold.

Profit Maximizes

The process by which a firm determines the price and output level that leads to the highest profit.

Elucidate the process by which businesses in perfectly competitive markets determine their production and operating strategies.
Compute and elucidate total income and earnings using provided sales figures and expense information for a company in a competitive industry.

Verified Answer

Final Answer :

$6.99

Learning Objectives

Elucidate the process by which businesses in perfectly competitive markets determine their production and operating strategies.
Compute and elucidate total income and earnings using provided sales figures and expense information for a company in a competitive industry.