Answer to Question #209415 in Microeconomics for Deep

Question

You operate Balvinder's Best Broccoli Boutique in Burnaby, BC, in a perfectly competitive environment. You have the following information. You want to decide how much you should produce , and what price you should charge. Complete the chart , and answer the questions below. Use decimals in your answers . HINT: Complete your cost calculations first, and review the lecture notes on the relationship of the MC curve to the ATC and AVC curves. Then, to calculate your revenue values , remember that this is perfect competition ... Quantity Price $TR $ MR$ TC $ 75 TFC $ TVC $ATC $ AVC $ 100 200 169 300 378 400 1.10

Answer 1

In a perfectly competitive environment the firm should produce such quantity, for which MR = MC = P, at this point total profit is maximized.