The Following Table Contains Information for a Price Taking Competitive

question 140

Essay

The following table contains information for a price taking competitive firm. Complete the table and determine the profit maximizing level of output (round your answer to the nearest whole number).
Total Marginal Fixed Average Total Average Marginal
Output Cost Cost Cost Cost Revenue Revenue Revenue
0 25
1 35
2 30
3 45
4 185
5 57
6 120 240

---

Definitions:

Risk Of Loss

The liability or potential for losing value or possession of goods, often considered in transactions and agreements.

Simple Delivery Contract

A basic agreement where the delivery of a good or service completes the transaction without the need for further obligations from either party.

Possession

The state of having control over something or someone, legally indicating ownership or the right to use.

Conditional Sales Contract

A type of contract in which the sale itself is contingent on approval; can be either a sale-on-approval contract or a sale-or-return contract.