Alpha Company is a competitive price-taker firm that is currently producing 100 units of output (Q=100). At the current level of production, the firm has Marginal Revenue of (MR=) $20, Average Variable Cost of (AVC=) $12, Marginal Cost of (MC=) $15, and Average Total Cost of (ATC=) $18. Use this information in responding to the following two requests. Each part is worth four.
Calculate the firm's Total Fixed Cost (TFC). At the current level of output (Q), calculate the dollar value of the firm's profit (or loss). Defend/Explain how you calculated that amount.