25. This question refers to the figure below which shows the price, marginal cost, and average cost curves facing a perfectly competitive firm in the short run. What is the total daily revenue of the profit-maximising firm in the short run?

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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25. This question refers to the figure below which shows the price, marginal cost, and average cost
curves facing a perfectly competitive firm
the short run.
What is the total daily revenue of the profit-maximising firm in the short run?
MC
AC
20
Price
AVC
60
80
100
Output per day
a)
R800
b)
R2 000
c)
R960
d)
R720
Cost, price (Rand)
Transcribed Image Text:25. This question refers to the figure below which shows the price, marginal cost, and average cost curves facing a perfectly competitive firm the short run. What is the total daily revenue of the profit-maximising firm in the short run? MC AC 20 Price AVC 60 80 100 Output per day a) R800 b) R2 000 c) R960 d) R720 Cost, price (Rand)
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