# Answer on Macroeconomics Question for sugunah

Question #36345

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.

How to calculate TFC, ATC, AVC, MC, TR, and MR.

Expert's answer

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

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

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