Problem
Suppose that a perfectly competitive firm faces a market price of $12 per unit, and at this price the upward sloping portion of the firms marginal cost curve crosses in marginal revenue curve at an output level of 1, 800 units. If the firm produces 1, 800 units. Its average variable costs equal $7.00 per unit, and its average fixed costs equal $1.00 per unit. What is the firm's profit- maximizing (or loss- minimizing) output level? (Enter your response as a whole number - include the minus sign if necessary.) What is the amount of its economic profits (or losses) at this output level? $ (Enter your response as a whole number - include the minus sign if necessary.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.