Answer to Question #36345 in Macroeconomics for sugunah
A competitive firm is maximizing profits by producing 250 units of output at the current market price of RM1000 per unit. The firm has average fixed cost (AFC) of RM300 and total costs of RM300000 at this output level.
How to calculate TFC, ATC, AVC, MC, TR, and MR.
TFC = AFC*Q = 300*250 = $75000 ATC = TC/Q = 300000/250 = $1200 AVC = ATC - AFC = 1200 - 300 = $900 MC = (TC2 - TC1)/(Q2 - Q1), so we need additional info to calculate it TR = P*Q = 1000*250 = $250000 MR = (TR2 - TR1)/(Q2 - Q1), so we also need additional info to calculate it