Ask Question
BusinessBusiness
12 June, 20:55

Lee company is a perfectly competitive firm. the market price of its output is $10. the firm is currently producing 100 units of output. at this level of output, the firm’s average total cost is $12 per unit, its average variable cost is $9 per unit, and its marginal cost is $10 per unit. on the basis of this information, what can we say?

+2
Answers (2)
  1. 12 June, 22:44
    0
    Best Answer is : Lee Company is suffering a loss, but it should stay in business in the short run. Because Any firm (regardless of market structure) will maximize profit by producing and selling the quantity at which marginal revenue is equal to marginal cost. In the special case of a perfectly competitive firm, marginal revenue is equal to price.

    Thus in the special case of a perfectly competitive firm, profit is maximized by producing and selling the quantity at which price is equal to marginal cost. This firm’s price of $10 is equal to its marginal cost, which is also $10.
  2. 12 June, 23:54
    0
    Lee company is a perfectly competitive firm. the market price of its output is $10. the firm is currently producing 100 units of output. at this level of
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Lee company is a perfectly competitive firm. the market price of its output is $10. the firm is currently producing 100 units of output. at ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Susan is working with the management team in her company to classify data in an attempt to apply extra security controls that will limit the likelihood of a data breach. What principle of information security is Susan trying to enforce?
Answers (1)
7. A generous benefactor pledges $1 million to The Smith Foundation, a NPO that promotes the arts. The gift is to be used to provide scholarships for talented musicians at a music camp operated by the Foundation.
Answers (1)
The total completion time is 25 days. task a is planned to take seven days. task b is planned to take five days. task c is planned to take eight days. the tasks have a serial relationship. how much slack does the project have?
Answers (1)
The owner of a valuable painting hired professional movers to transport it to an auction house when she decided to sell it.
Answers (1)
Suppose that Ms. Hamir stacked the deck with her design proposal. In other words, she purposefully under-designed the less expensive solution and produced a cost estimate for the higher-end version that she knew would come in over budget if it were
Answers (1)
New Questions in Business
On January 1, Gucci Brothers Inc. started the year with a $708,000 balance in Retained Earnings and a $598,000 balance in common stock.
Answers (1)
Profit, Revenue, and Total Cost Think about an artist who owns her own business. Match each term with the example from her business that best fits that term.
Answers (2)
For all of the following questions, refer to the following table, which gives financial information for Apple for fiscal year 2002 (in millions) : Sales $5,742 Cash (includes marketable securities) $4,337 Cost of Sales 4,139 Accounts Receivable 565
Answers (1)
A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees.
Answers (2)
Sand, Inc. has outstanding $5,000,000, 10%, 20-year bonds. The bonds are callable at 104 on any interest date. The bonds were issued at par and mature in 10 years.
Answers (1)
Home » Business » Lee company is a perfectly competitive firm. the market price of its output is $10. the firm is currently producing 100 units of output.
Sign Up Forgot Password?