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What is the profit maximizing or loss-minimizing output

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Werner & Sons is a manufacturer of three-ring binders operating in a perfectly competitive industry. Table 12-5 shows the firm's cost schedule.

Table 12-5

Quantity (cases) Variable Cost Total Cost  Marginal Cost Average Variable Cost Average Total Cost

0  $0 $76

1  30 106

2  50

3 134

4 140

5 160

6 114

7 150

8 190

9 316

Werner is selling in a perfectly competitive market at a price of $40. What is the profit maximizing or loss-minimizing output?

Reference no: EM132346329

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