A perfectly competitive firm selling 15 units of output at a market price of $8, with average fixed costs of $2 and average variable costs of $3, will:

To determine the firm’s financial outcome, we can analyze the costs and revenues based on the provided data.

First, we compute the total revenue generated by selling 15 units at a market price of $8 per unit. Total revenue is calculated by multiplying the price per unit by the number of units sold, which yields:

Total Revenue = Price × Quantity = $8 × 15 = $120

Next, we need to calculate the total costs incurred by the firm. For this, we can first find the average total cost (ATC), which is the sum of average fixed costs (AFC) and average variable costs (AVC).

Average Total Cost (ATC) = Average Fixed Cost (AFC) + Average Variable Cost (AVC)
ATC = $2 + $3 = $5

Then we find the total cost by multiplying the average total cost by the quantity produced:

Total Cost = ATC × Quantity = $5 × 15 = $75

Now, we can calculate the total profit by subtracting total cost from total revenue:

Total Profit = Total Revenue - Total Cost = $120 - $75 = $45

This calculation shows that the firm earns a total profit of $45 by selling