Assume this firm is trying to maximize Profit under Perfec…
Assume this firm is trying to maximize Profit under Perfect Competition. How much is its Profit or Loss? Show your solution. Formulas: MU = change in TU / change in Q MPP of Labor = change in Q / change in L TC = TFC + TVC or TC = ATC x Q MC = change in TC / change in Q AFC = TFC/Q AVC = TVC/Q ATC = TC/Q or ATC = AFC + AVC TR = P x Q (that’s Price x Quantity) MR = change in TR / change in Q Profit / Loss = TR – TC TVC = AVC x Q