Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units per year. Your marginal cost is P10 per chip up to capacity. You have a fixed cost of P10,000 if production is positive and P0 if you shut down. What are your profit-maximizing levels of production and profit if the market price is (A) P5 per chip, (B), P15 per chip, and (C) P25 per chip? For case (B), explain why production is positive even though profits are negative.

Question

Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units per year. Your marginal cost is P10 per chip up to capacity. You have a  fixed cost of P10,000 if production is positive and P0 if you shut down.  What are your profit-maximizing levels of production and profit if the market price is (A) P5 per chip, (B), P15 per  chip, and (C) P25 per chip? For case (B), explain why production is positive even though profits are negative.

TETSXPREME · Answer

Welcome To QuestionCove
So This is a multiple thing you have to do

MidNiGhtSkY · Answer

which one do you fit the best fr the question?

bryna321 · Answer

https://www.bartleby.com/questions-and-answers/suppose-you-are-a-perfectly-competitive-firm-producing-computer-memory-chips.-your-production-capaci/cd53b0df-05c9-46db-ab8f-3109dfe858eb Hope this helps u!