A perfectly competitive firm producing 100 units of output per period finds that: average total cost is $20; average variable cost is $12; marginal cost is $18 and increasing; price of the product is $15. this firm should
This is the concept of business mathematics. The question requires us to calculate the profit margin given the that the cost of production is $20, variable cost is $12 and marginal cost is $18. Also we are told that the price per product is $15. Profit=Revenue-Cost Revenue=100*15=$1500 Total cost=20+12+18=$50 Therefore the profit margin will be: 1500-50 =$1450
