Homework Help: Economics - Short run profit maximization

Posted by Raj Sree on Saturday, June 25, 2011 at 9:05am.

Given the following for perfectly competitive firm that has short-run cost structure
Output Marginal Cost
1 $10
2 $5
3 $12
4 $23
5 $40

Total fixed costs are $20 and the market price of the product is $25 per unit. How much output should the profit-maximizing firm produce (if any) and how much profit or loss will the firm make in the short run?

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