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In a perfectly competitive market, assume the market price is $5 per unit and the profit-maximizing quantity is 70 units. If the ATC at 70 units is $8, what is the profit/loss amount at the profit-maximizing quantity

Respuesta :

Based on the information given, the loss for the perfectly competitive market will be $210.

From the information given, the average total cost of 70 units is $8. Therefore, the total cost will be:

= 70 × $8 = $560.

The revenue will be:

= Price × Quantity

= $5 × $70

= $350

Therefore, the loss will be;

= Total revenue - Total cost

= $350 - $560

= -$210

Therefore, the loss is $210.

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