What is the firm-s profit - maximizing output level


Suppose that the price of a service sold in a perfectly competitive market is $25 per unit. For a firm in this market, the output level corresponding to a marginal cost $25 per unit is 2,000 units. Average variable costs at this output level equal $15 per unit, and average fixed costs equal $5 per unit. What is the firm's profit - maximizing (or loss - minimizing) output level? What is the amount of its economic profits (or loses) at this output level?

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Microeconomics: What is the firm-s profit - maximizing output level
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