Total fixed costs are $10.
Refer to the data. The profit maximising level of output for this frim is ???
show clearly how???
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A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of output where MC equals MR.
Total profit is maximized where marginal revenue equals marginal cost. In this example, maximum profit occurs at 5 units of output. A perfectly competitive firm will also find its profit-maximizing level of output where MR = MC.
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