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# Answer to Question #63329 in Microeconomics for Ronnie

Question #63329
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=) $12, Marginal Cost of (MC=)$8, and Average Total Cost of (ATC=) $10. Use this information in responding to the following two requests. 1.1. At this level of output (Q), calculate the dollar value of the firm's profit (or loss). Defend/Explain how you calculated that amount. 1 Expert's answer 2016-11-14T09:54:09-0500 At Q = 100 MR =$12, MC = $8, ATC =$10.
1.1. At this level of output (Q), the dollar value of the firm's profit (or loss) is TP = (P - ATC)*Q. As the firm is a price-taker, then P = MR = $12, so TP = (12 - 10)*100 =$200.

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