A perfectly competitive firm is selling a product at the market price of $11. It produces and sells the profit-maximizing quantity of 50 units, and at this level of output, its average total cost is $8 and its average variable cost is $7. What is the firm’s level of profit?

You are the cfo of a u.s. firm whose wholly owned subsidiary in mexico manufactures component parts for your u.s. assembly operations. the subsidiary has been financed by bank borrowings in the united states. one of your analysts told you that the mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. what actions, if any, should you take