Homework Answers
Answer:
incurring $200 in total economic losses and its minimizing economic losses.
Explanation:
profit= TR-RC
=1000-1200
=-200.
TR=P*Q
= 10*100
= 1000
TC= average total cost *quantity
=12*100
=1200
it is minimizing loss as it is producing at MR=MC.
in perfect competition MR=Price, so P=MC=10.
so, firm is minimizing loss.
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