5) If the profit maximizing quantity is 50, the average revenue (AR) is $6 and the average total cost (ATC) is $5, what is the profit? (Reminder: profit = total revenue - total cost)
5) If the profit maximizing quantity is 50, the average revenue (AR) is $6 and the average total cost (ATC) is $5, what is the profit? (Reminder: profit = total revenue - total cost)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
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Question 5 please
![1) If ATC is below the MR=P=AR=D line is there a profit or a loss? What will happen in the
long run in the market (In other words, will other firms join the market or exit the market?)
2) If ATC is above the MR=P=AR=D line is there a profit or a loss? What will happen in the
long run in the market (In other words, will other firms join the market or exit the market?)
3) What rule do economists follow to determine the quantity that should be produced in
order to maximize profit?
4) If AVC and ATC are both above the MR=P=AR=D line what will happen in the short-run
and the long-run? (Explained at the end of the video).
5) If the profit maximizing quantity is 50, the average revenue (AR) is $6 and the average
total cost (ATC) is $5, what is the profit? (Reminder: profit = total revenue - total cost)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d0f54a7-3789-4e8d-9929-4b2dd378049f%2F396efe87-2495-465e-90b5-3c247ba69125%2Fyp4w79r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) If ATC is below the MR=P=AR=D line is there a profit or a loss? What will happen in the
long run in the market (In other words, will other firms join the market or exit the market?)
2) If ATC is above the MR=P=AR=D line is there a profit or a loss? What will happen in the
long run in the market (In other words, will other firms join the market or exit the market?)
3) What rule do economists follow to determine the quantity that should be produced in
order to maximize profit?
4) If AVC and ATC are both above the MR=P=AR=D line what will happen in the short-run
and the long-run? (Explained at the end of the video).
5) If the profit maximizing quantity is 50, the average revenue (AR) is $6 and the average
total cost (ATC) is $5, what is the profit? (Reminder: profit = total revenue - total cost)
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