A small pharmaceutical company on perfectly competitive market developed a new medicine that lets people lose 6kg in one month

Economics Dec 17, 2020

A small pharmaceutical company on perfectly competitive market developed a new medicine that lets people lose 6kg in one month. So far the company sold 200 doses of the new medicine and faces the following average total cost schedule. Q 199 200 201 Average total cost $199 $200 $201 If the market price=$400 should the company produce more output if they want to maximize the profit? What is the level of output maximizing profit, 199, 200 or 201 doses of the new medicine? Explain your answer Question 3. Use the three characteristics of perfect competition market structure to discuss whether street food market in your city is perfectly competitive.

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