A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve...

A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels:

• Marginal cost curve intersects the average variable cost curve at $150.


• Marginal cost curve intersects the average total cost curve at $200.


• Marginal cost curve intersects the marginal revenue curve at $170.


• At Q = 100, ATC = $210 and AVC = $155

 Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? Explain.