Question: Video Answer:  Get the answer to your homework problem. Try Numerade free for 7 days We don’t have your requested question, but here is a suggested video that might help. Related Question'A firm in - competitive market has the following cost structure as in the Figure below: If the firms fixed cost of production is S3,and the market price S1O, how many units should the firm produce to maximize profit? Owgpwt_ ATC S10 S10 Select one: 3 units b.4 units C.2 units d.1unit' DiscussionYou must be signed in to discuss. Video TranscriptHello, I'm here. Let me focus on simplicity. This table needs to be made. We have at least three, maybe four, and five. We have an average cost. There was nothing here. There are ten, eight, seven, and eight. We can find the total cost from here. We divide the average total cost by the number. We have 10 and 16 here. We have 21, 32 and 50. The fixed cost production is $3 The total costs are equal to three when the quantity is zero. We can see the total revenue from selling this. It is a price times a quantity. So the price is $10. zero 10 20 duty 40 and 50 is the revenue. The profit can be found now. The difference is between revenue and cost. The total revenue minus total cost is called total revenue minus total cost. The question is how many units the firm produced. You can see that the highest profit is nine. The company will maximize its profit if it is at this amount or three. So the answer is three unions. Or the answer is a. A is the correct answer to the question. The units are three. Thank you for your attention. Transcribed Image Text:Suppose that a firm in a competitive market faces the following revenues and costs. The firm should not produce an output level beyond what quantity? Quantity Total Revenue Total Cost $0 $2 $6 $5 $12 $9 3. $18 $13 $24 $18 $30 $25 $36 $32 5 units 6 units 4 units 3 units 4. 6 Q: A firm operates in a perfectly competitive market. Its marginal cost = to its marginal revenue. 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Suppose that a firm in a competitive market faces the following revenues and costs
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