A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has a price of $10, average total cost of $8, and fixed cost of $200. Given this, profit is ___, marginal cost is _, and average variable cost is_______.

(ii) Under a perfectly competitive market conditions, the average revenue and marginal revenue are equal and profit maximizing firms under these market conditions producing at a point where marginal revenue is equal to the marginal cost.

Therefore, the marginal cost is equal to $10.

(iii) The average cost is the sum total of average fixed cost and average variable cost.

AC = AFC + AVC

AVC = AC - AFC

= $8 - ($200 ÷ 100 units)

= $8 - $2

= $6

Therefore, average variable cost is equal to $6.

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has a price of $10, average total cost of $8, and fixed cost of $200. Given this, profit is _______, marginal cost is _______, and average variable cost is_________.

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A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has a price of $10, average total cost of $8, and fixed cost of $200. Given this, profit is ___, marginal cost is _, and average variable cost is_______.