• anonymous
Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units per year. Your marginal cost is $10 per chip up to capacity. You have a fixed cost of$10,000 if production is positive and $0 if you shut down. What are your profit-maximizing levels of production and profit if the market price is (a)$5 per chip, (b) $15 per chip, and (c)$25 per chip?
OCW Scholar - Principles of Microeconomics

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