If the market price in the market is $28, the firm in the purely competitive market will produce 7 units at a loss of $14.00.
What will the firm do?
The firm will try to produce a quantity that has the lowest average total cost and the lowest marginal cost as well.
This level from the table is 7 units.
At this level the loss to the company is:
= (7 x 28) - (7 x 30)
= $14
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