32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 D= MR AVC AFC 0 Quantity 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 What is the firm's profit at the profit maximizing level of output? (If your answer is negative, please insert your solution as: -XX)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QUESTION 4
The following graph summarizes the demand and costs for a firm that operates in a perfectly competitive market.
$48
46
P
44
42
40
MC
38
36
ATC
34
32
30
28
26
24
D= MR
AVC
22
20
18
16
14
12
AFC
10
8
6
4
2
0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
Quantity
What is the firm's profit at the profit maximizing level of output? (If your answer is negative, please insert your solution as: -XX)
Transcribed Image Text:QUESTION 4 The following graph summarizes the demand and costs for a firm that operates in a perfectly competitive market. $48 46 P 44 42 40 MC 38 36 ATC 34 32 30 28 26 24 D= MR AVC 22 20 18 16 14 12 AFC 10 8 6 4 2 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 Quantity What is the firm's profit at the profit maximizing level of output? (If your answer is negative, please insert your solution as: -XX)
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