49. Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12.50 what is the firm's economic profit? (picture of table attached) A. $10 per hourB. zeroC. $20 per hourD. -$10 per hour QuantityTotal cost, TC(tattoos per(dollars perhour)hour)101252353504705956125Archibald's Tattoos is a perfectly competitive firm. Thefirm's costs are shown in the table above. If the marketprice of a tattoo is $12.50 what is the firm's economicprofit?$10 per hourzero$20 per hour-$10 per hour

A perfectly Competitive Firm maximizes profit by producing output at a level where P = MR = MC or MR…

Answered: Archibald's Tattoos is a perfectly…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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49. Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12.50 what is the firm's economic profit? (picture of table attached)

A. $10 per hour

B. zero

C. $20 per hour

D. -$10 per hour

Quantity
Total cost, TC
(tattoos per
(dollars per
hour)
hour)
10
1
25
2
35
3
50
4
70
5
95
6
125
Archibald's Tattoos is a perfectly competitive firm. The
firm's costs are shown in the table above. If the market
price of a tattoo is $12.50 what is the firm's economic
profit?
$10 per hour
zero
$20 per hour
-$10 per hour

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