Suppose that a perfectly competitive firm faces a market price of $7 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curveat an output level of 1,400 units. If the firms produces 1,400 units, it's average variable costs equal $6.50 per unit, and its average fixed costs equal $0.80 per unit.
What is the firm's maximizing (or loss-minimizing output level?
What is the amount of its economic profits (or losses) at this output level?