35 30 25 20 16 15 12 10 I 5 O 720 O 900 I O 960 O 600 P₁₁ 10 20 30 45 50 60 70 80 90 100 110 Q Consider the above diagram as the cost and revenue structure of perfect competition (P = MR) If the price is $15 (P2), what is the total cost associated with the profit maximizing (or loss minimizing) quantity? AVC P₂ P3 5

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