Answer: 7 units at an Economic Profit of $238
Step-by-step explanation:
A Purely Competitive Firm is known to maximise profit at the point where Marginal Revenue equals Marginal Cost because at this point, all resources are being utilized fully.
The Marginal Revenue refers to the products Price so.the Marginal Revenue in this case is $180.
The Unit that corresponds to a Marginal Cost of $180 is 7 units from the above table.
This means that the firm.will produce 7 units.
At 7 units, the revenue is,
= 7 * 180
= $1,260
At 7 units the Total Cost ( Average Total Cost) is,
= 7 * 146
= $1,022
The Economic Profit is therefore,
= 1,260 - 1,022
= $238